What is a franchising?
Gravity Created by hannah_linscott Terms in this set (51) What is franchising? Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a payment ("franchise fee"), and usually a percentage of gross sales or profits ("royalty").
What are the advantages of a franchise?
Another major advantage of a franchise is that you do not have to invest in developing the market yourself. This means you can save a lot of money and avoid risk. One of the biggest advantages of a franchise is that it can be expanded easily. A franchise is designed to grow over time, and there is no need to hire a team of employees.
How do franchisees compete with each other for customers?
Physical locations are helpful to serving customers Franchisees compete with each other if services are provided at a customer's location (e.g., carpet cleaning, online travel agencies) but not if customers travel to them (e.g., computer store Local market knowledge is important to performance
What are the three factors that make franchising appropriate?
three factors make franchising appropriate 1)Valuable system to sell -- the business is based on a proven system 2)Transferable concept -- the system can be reduced to a set of operating rules that can be codified
How does franchising work?
Why is franchising important?
What is franchising fee?
Does subway have a franchise agreement?
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Chapter 6: Franchising Flashcards | Quizlet
Study with Quizlet and memorize flashcards containing terms like Definition of Franchising, Types of Franchising:, Trade-name Franchising: and more.
EEE 2023 Chapter 15: Franchising Flashcards | Quizlet
The franchise business plan should follow the format of a conventional business plan, which we discussed in Chapter 6, and should fully describe the rationale for franchising the business and act as a blueprint for rolling out the franchise operation.
What Is Franchising? | Business Quiz - Quizizz
Play this game to review Business. According to this lesson, what is the primary reason a franchisor retains some control over operational decisions?
How does franchising work?
Franchising works well in settings where negotiating with customers is important to sales. For example, equipment rental and tuxedo rental. The level of standardization and codification of the process of creating and delivering the product or service is high. Easy to specify behavior in a contract.
Why is franchising important?
Franchising allows fast growth, which provides the economies of scale needed to cheaply build a brand. For example, Wendy's. The operation is labor intensive. Franchisees are less likely to "shirk" than company-employed managers. For example, maid services. Outlets are not terribly costly or risky to establish.
What is franchising fee?
Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a payment ("franchise fee"), and usually a percentage of gross sales or profits ("royalty").
Does subway have a franchise agreement?
a new franchise agreement that allows Subway to redirect franchisee advertising dollars away from the Subway Franchisee Advertising Fund Trust, which is governed by a board of elected franchisees, to a separate entity created by Subway.
How does franchising work?
Franchising works well in settings where negotiating with customers is important to sales. For example, equipment rental and tuxedo rental. The level of standardization and codification of the process of creating and delivering the product or service is high. Easy to specify behavior in a contract.
Why is franchising important?
Franchising allows fast growth, which provides the economies of scale needed to cheaply build a brand. For example, Wendy's. The operation is labor intensive. Franchisees are less likely to "shirk" than company-employed managers. For example, maid services. Outlets are not terribly costly or risky to establish.
What is franchising fee?
Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a payment ("franchise fee"), and usually a percentage of gross sales or profits ("royalty").
Does subway have a franchise agreement?
a new franchise agreement that allows Subway to redirect franchisee advertising dollars away from the Subway Franchisee Advertising Fund Trust, which is governed by a board of elected franchisees, to a separate entity created by Subway.
