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Unscramble these businesses

MdlcDonas HoalidynIon Sbartkucs Donomizziesa Waybus Potoffscie. McDonalds Holiday Inn Starbucks Dominoes Pizza Subway Post Office. Unscramble these businesses . What do these businesses all have in common?. Franchises.

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Unscramble these businesses

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  1. MdlcDonas HoalidynIon Sbartkucs Donomizziesa Waybus Potoffscie McDonalds Holiday Inn Starbucks Dominoes Pizza Subway Post Office Unscramble these businesses What do these businesses all have in common?

  2. Franchises A franchise is a marketing arrangement allowing another business to trade in the same style as an existing business

  3. Franchises • An established business (the franchisor) offers for sale to other businesses or individuals (the franchisee) the rights to use its products, services or logos (usually in a specific geographical area). • Usually there is: • An initial set up fee (can be costly) • A % of sales turnover is paid annually (royalty)

  4. Key terms • Franchisor – The person or business who offers to franchise to other businesses its trading methods, products and business logos • Franchisee – A person or business buying the franchise • Royalty – A payment made to the franchisor based on the sales turnover of the franchise

  5. Assessing a franchise opportunity • Location of franchise • Successes of other franchises • What the business is / how it operates • Competition in same market sector • How long the franchisor has been in business – and how financially secure it is

  6. Training and support offered. • Conditions and restrictions (I.e. how long is agreement, how it is run) • Initial and ongoing costs – I.e. McDonalds initial cost is between £150,000 and £500,000

  7. Who wants to be a millionaire franchising quiz • www.quia.com/rr/176871.html

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