562460
Description
Mind Map by Mingetron 4000, updated more than 1 year ago
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Created by Mingetron 4000
over 10 years ago
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Franchising
- Definitions
- Franchise
- The business Format (Product, Brand)
which a franchisor allows a franchisee to
use under licence
- The business Format (Product, Brand)
which a franchisor allows a franchisee to
use under licence
- Franchisor
- The ultimate owner of the franchise
format
- The ultimate owner of the franchise
format
- Franchisee
- The business which is granted the right to
operate a franchise on behalf of the
franchisor
- 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
- Legal contract which sets out the commercial deal
between franchisor and franchisee
- Examples of UK Franchises
- Subway
- Costa
- Mcdonalds
- Dominos
- Interlink express
- Subway
- Franchise
- 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)
- Initial cost varies from 25k to 100k
- Franchisee
- Advantages
- Your own business
- Ongoing advice and
support from franchisor
- Dont really need experience
of the market
- Benefits from your
franchisors scale
- Your own business
- 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
- Dont own the
business format
- Advantages
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