Franchises

Key Terms

Franchise:A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support and control.

Franchising:A method of business expansion characterized by a trademark license, payment of fees, and significant assistance and/or control.

Key Terms

Franchisor:The person or company that grants the franchisee the right to do business under their trademark or trade name. 

Franchisee: The person or company that gets the right from the franchisor to do business under the franchisor’s trademark or trade name.

What a Franchisor sells

Name

Methods of doing business

Advertising materials

Any necessary training

National advertising and PR

Business Survival:

Top 10 Franchises for 2012according to Entrepreneur Magazine

10. Dunkin Doughnuts

9. Pizza Hut

8. H & R Block

7. Denny’s

6. McDonalds’s

5. Days Inn

4. Servpro

3. 7-Eleven

2. Subway

1. Hampton Hotels

Good and the Bad

Advantages:

Proven System

Established Brand Name

Training/Support

Buying Power

Disadvantages:

Loss of control

High Start-up Costs

Profit sharing