Franchises

Question 1

Advantages of franchising

Answer 1

Easily expands globally
Less work for the franchiser
Franchisee does not need to spent money on advertising

Question 2

Disadvantages of franchising

Answer 2

Franchiser does not have complete control
If run badly may affect company name
Cost money to train the owner
Franchisee does not have 100% of the profits

Question 3

What is the differences between franchisee and franchisor

Answer 3

Franchisor is the company in which sells their brand name for money
Franchisee is the person who buys the license to use a (usually large) company name

Question 4

What is a franchise

Answer 4

A franchise is a business based upon the use of brand names and promotional logos of an existing successful business