A franchise is where a business sells a sole proprietor the right to set up a business using their name.
Examples of major franchises are:
The franchisor is the business whose sells the right to another business to operate a franchise – they may run a number of their own businesses, but also may want to let others run the business in other parts of the country.
A franchise is bought by the franchisee – once they have purchased the franchise they have to pay a proportion of their profits to the franchiser on a regular basis. Depending on the business involved, the franchiser may provide training, management expertise and national marketing campaigns. They may also supply the raw materials and equipment.
The advantages of being a franchisor:
The advantages of setting up as a franchisee are:
The disadvantages of setting up as a franchisee are:
In conclusion, a buying a franchise a good way of an individual setting up a business because:
Join Graham Prior and Jim Riley for a resource-packed CPD day which will help you accelerate your planning and lesson preparation for the new AQA A Level Business. We've packed this day with resources to help teach the new spec content. We also consider how best to approach the challenges of a linear Business course.