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Franchising
Descripción
PLIDA (Proyecto Lengua Italiana Dante Alighieri) (BUSS 1) Business Studies Mapa Mental sobre Franchising, creado por Mingetron 4000 el 19/02/2014.
Sin etiquetas
business studies
buss 1
business studies
buss 1
plida (proyecto lengua italiana dante alighieri)
Mapa Mental por
Mingetron 4000
, actualizado hace más de 1 año
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Menos
Creado por
Mingetron 4000
hace más de 10 años
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Resumen del Recurso
Franchising
Definitions
Franchise
The business Format (Product, Brand) which a franchisor allows a franchisee to use under licence
Franchisor
The ultimate owner of the franchise format
Franchisee
The business which is granted the right to operate a franchise on behalf of the franchisor
Franchise agreement
Legal contract which sets out the commercial deal between franchisor and franchisee
Examples of UK Franchises
Subway
Costa
Mcdonalds
Dominos
Interlink express
Costs of being a Franchisee
Initial cost varies from 25k to 100k
Service fee (An average of around 10% of sales paid weekly or monthly)
Advertising levy (A contribution from each franchisee towards the franchisor for advertising costs)
Mark ups (Some franchisors insist in franchisees buying good from them to sell)
Franchisee
Advantages
Your own business
Ongoing advice and support from franchisor
Dont really need experience of the market
Benefits from your franchisors scale
Disadvantages
Dont own the business format
Risk to franchisor going out of business
Restrictions on trading
Large poportions of profit has to be given to the franchisor
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