Franchise

Which is NOT an example of a franchise outlet in Male'?

• KFC

• PIZZA HUT

• BURGER KING

• MHA

Franchisee is the company or person purchasing the rights to run a business.

• TRUE

• FALSE

A franchise allows complete independence and creativity

• TRUE

• FALSE

A contract giving permission to operate a business to sell products and services

• partnership deed

• franchisee

• franchise

• sole trade

What does a franchisee pay to the franchisor?

• dividend

• royalty

• profit

• share

One of the reasons for a business to buying a franchise is because:

• it is always much cheaper than setting up own business

• it gives complete control over important decisions

• the business can use its own name in advertisements

• the risk of failure is lower as its using a wellknown business idea

An advantage to the franchisor of selling a franchise license is:

• the business can expand more quickly

• the franchisor owns all of the shops

• franchisees can be certain to be successful

• the products sold in each shop will be different

A limitation for an entrepreneur setting up a franchise business is:

• lower profit

• franchisor has to pay a share of setting up costs

• franchisee cannot take independent decisions

• risks are shared with franchisor

Which of the following local business operates Coca Cola as a franchise in Maldives?

• MPL

• MAWC

• MWSC

• MTCC

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