1. Franchises
Intro To Business

2. Franchisor
a person or company that grants a franchise.

3. Franchisee
a person or company to whom a franchise is granted.

4. Franchise
The right or license granted by a company to an individual or group to market its products or services in a specific territory.
It is in the form of a written agreement

5. Why franchise? Stable brand name
Brand Name has a customer base(loyalty)
Company gives you training
Company has national advertising exposure
Feeling of belonging to a national company

6. Fees Royalty Fees- usually between 3-6% of
Sales to cover advertising expenses
Initial start-up fee- the more renowned
the franchise, the higher the fee
Required Net Worth-how much money you
have. Franchisees must avoid bankruptcy.

7. Not a Form of Ownership
A franchise is not a form of ownership however…
It may be run as a sole proprietorship
Partnership, LLC etc.
Corporation(multiple locations i.e. Dunkin Donuts located in close proximity.)