i have to do this thing for my business course & i need a description of a franchise. can anyone help me out?
2007-12-05 09:00:43 · 5 answers · asked by Anonymous in Business & Finance ➔ Small Business
a franchise is normally offered by companies who have a proven brand. macdonalds, business post, etc.
they offer use of the brand and branding and other marketting support to franchisees who purchase a franchise from them.
for example. you purchase a franchise from say, business post for £?k. They may offer you marketing materials, use of the central trunk, all necessary paperwork, use of the logo etc, advise on how to run the business. in return you will need to abide by all their rules and may have to pay an annual 'rent' to them for the use of the name etc.
all franchises offer different levels of support and may or may not require anual payments once the franchise is bought. They are a good source of starting a business if you have some money to invest and want the support from a 'parent company' and also want to start out with an established name. some of the franchise sellers will even pass customers to you dependant on the type of franchise you purcahse. good luck
2007-12-05 09:12:07 · answer #1 · answered by prodgers12000 1 · 0⤊ 0⤋
Franchise is a business word which is formal permission, like a licence, to use the name and products of a company.For instance,You need to pay for the franchise if you want to run chain-store like McDonald.
2007-12-05 18:18:36 · answer #2 · answered by Long W 2 · 0⤊ 0⤋
A franchise is were you invest a sum of money to trade under the umberella of an established name. A good example of this is Kentucky Fried Chicken they provide the building and contents and you pay them for their name. You then recieve a portion of the profits you earn from your investment.
2007-12-05 09:13:14 · answer #3 · answered by sexyma 4 · 0⤊ 0⤋
You own one or more units of a chain, maybe hotels, restaurants or hair salons. Your units run under the name of a large company, and they set the basic rules for your operation. You provide the building and equipment, hire the employees, and run the business within the guidelines the company sets, and pay them a fee to start up, and an ongoing fee for using their name and services.
2007-12-05 09:14:43 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
it's like macdonalds or subway... you buy the land / building etc, and pay the company a chunk of cash they then let you into the franchise, and they set you up with all the advertising and decoration, and food products, then take a massive slice of the profits. clever stuff.
2007-12-05 09:06:27 · answer #5 · answered by john c 3 · 0⤊ 0⤋
It's owning your own business but, someone else tells you how to run it.
2007-12-05 09:08:43 · answer #6 · answered by sweet miss melissa 2 · 0⤊ 0⤋