Franchises

The franchisee must follow ALL rules stated in the franchise agreement.

• True

• False

Franchises are significantly more successful than independently owned businesses. 

• True

• False

This is the individual or organization selling the franchise.

• franchisor

• franchisee

This is the person or organization purchasing the franchise.

• franchisee

• franchisor     

Match the words with their definitions.

• business model

• a regular fee paid to a person or company for managing a business

• capital

• the act of giving time, money or effort to a particular task in order to make it successful

• investment

• a plan for running a business, identifying where the money will come from

• franchise fee

• wealth or property that is owned by a business or a person and can be invested or used to start a business

• management fee

• the one-time payment made by a franchisee to the franchisor for joining the franchise system

What is the comercial franchise?

• It is the franchisor himself that produces the products that the franchisees sell

• The franchisor offers the franchisee all the necessary elements to sell the products and services

• It is the mix of the product franchise and service franchise model

One of the advantages of the manager as a franchisee is that franchises are an exellent field to train as an entreperneur, due to the strong support provided by the headquarters and the complete network of other franchisees

• True

• False

The ______ agrees to let_______use a compass name and sell its product or service on a local market. (franchise - make suitable forms)

The person who runs the local KFC in your shopping centre is a ... .

• franchiser

• franchisee

• franchise

What is a franchise in the context of business?

• A) A type of business where the owner licenses its operations, products, branding, and knowledge to another party.

• B) A business owned and operated by a single individual without any external affiliations.

• C) A government-owned corporation that provides public services.

• D) A non-profit organization focused on charitable activities.