1. Franchises Entrepreneurship- Please get out notebooks and books and get ready to take notes!

2. Definition of Franchise  A legal agreement to begin a new business in the name of a recognized company

3. 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

4. Seller - Franchisor  Selling its planning and management expertise  Can restrict how you run your business  Locations of other franchisee may be too close

5. Success Stories  Read the story on Page 61 about Ray Kroc  Take notes in your notebook about the important aspects of this franchise

6. The First Franchise Empire  1954 – Ray Kroc  Bought from McDonald Brothers  10- year  1961 bought out the brothers  1966- 800  Today – Over 30,000

7. Other places to find businesses  Business broker – someone whose job is to bring buyers and sellers together  Start your own – Page 62-63

8. 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