Franchises Entrepreneurship- Please get out notebooks and books and get ready to take notes!
Definition of Franchise A legal agreement to begin a new business in the name of a recognized company
Franchisee (buyer) Buys the right to a product, process, or service; training and assistance in setting up the business; and ongoing marketing and quality support while the business is in operation –Not as risky!!! –Pay 3-8 % Royalty
Seller - Franchisor Selling its planning and management expertise Can restrict how you run your business Locations of other franchisee may be too close
Success Stories Read the story on Page 61 about Ray Kroc Take notes in your notebook about the important aspects of this franchise
The First Franchise Empire 1954 – Ray Kroc Bought from McDonald Brothers 10- year 1961 bought out the brothers Today – Over 30,000
Other places to find businesses Business broker – someone whose job is to bring buyers and sellers together Start your own – Page 62-63
Directions On Page 62 answer the 7 questions (in your notebooks) about the business you plan to start in this class Read the “What you must do” section on Page 63 and formulate ideas for your business