Describe at least one advantage and one disadvantage of franchising for the franchisor and at least one advantage and disadvantage of franchising for the franchisee.
What will be an ideal response?
Answers will vary. An advantage of franchising to the franchisor is that franchisors often find that franchisees-as profit-oriented owners-are more motivated than salaried managers to do whatever it takes to maximize the success of their outlets.The disadvantage of franchising to the franchisor is that franchisors often find that dealing with a large number of semi-independent franchisees can be complex and challenging.The advantage of franchising to the franchisee is that operating a franchise can be considerably less risky than starting a business from scratch. That's because franchises offer access to a proven business system and product.The disadvantage of franchising to the franchisee is that participating in a franchise can be costly-franchisees usually pay an initial franchise fee as well as ongoing royalties; in addition, they can be assessed additional fees to cover costs such as national advertising campaigns.
You might also like to view...
High-stress customer contact employees such as card dealers in casinos need frequent breaks
Indicate whether the statement is true or false
Bicycle store 2Wheels wants to maximize sales from each customer. The marketing team suggests that 2Wheels uses cross-selling techniques. How can the company implement this technique?
What will be an ideal response?
Which of the following statements is not true of defining the major issues related to achieving the goal, step two in the planning process?
A. Single-issue negotiations tend to dictate integrative negotiations. B. Some negotiations may consist of only a single issue and other negotiations are more complex. C. This step begins with an analysis of the key issues to be discussed in the negotiation. D. The number of issues affects strategy.
Which of the following statements is true about investments categorized as trading securities?
a. They are valued on the balance sheet at cost. b. They can consist of debt, but not equity, securities. c. They are purchased to be held to maturity. d. Changes in market value are reflected in net income.