Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor...

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Franchises

Transcript of Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor...

Page 1: Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support.

Franchises

Page 2: Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support.

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.

Page 3: Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support.

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.

Page 4: Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support.

What a Franchisor sells

Name

Methods of doing business

Advertising materials

Any necessary training

National advertising and PR

Page 5: Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support.

Business Survival:

Page 6: Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support.

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

Page 7: Franchises. Key Terms Franchise: A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support.

Good and the Bad

Advantages:

Proven System

Established Brand Name

Training/Support

Buying Power

Disadvantages:

Loss of control

High Start-up Costs

Profit sharing


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