Posted 12 May 2007 - 06:16 PM
It confuses me.
Ive heard McDonalds but i dont get the whole putting it under the name thing
Posted 12 May 2007 - 08:43 PM
well franchise is a business run by one firm under the name of another so:
Franchiser gives the franchisee a license permitting them to sell goods or services under their companys bramd name usually in return for a share of the franchisee's profits .
Mcdonalds is a franchise. As they are run by many people and is a global brand.
Sorry its hard to explain but just make sure you know the advantages and disadvantages for the franchiser and the franchisee. And remember its definition.
And once again sorry i dont know if its helped.
Posted 12 May 2007 - 11:11 PM
Posted 15 May 2007 - 10:13 AM
Franchisee- Give the franchiser a share of profits in return for use of the brand name
MacDonalds and Subway are indeed the best examples. MacDonalds is a franchise chain since the HQ in America acts as franchiser and each store is owned individually by local owners (or franchisees). In order to standardise quality, MacDonalds provides tools not just premises. This is how each store sells the same things.
Advantages for Franchiser
* more new ideas can be generated- e.g. Egg McMuffin thought up by franchisee then relayed to all other stores
* stores can be spread across more locations
Disadvantages for Franchiser
* if one franchisee stuffs up, the reputation of all is damaged
Advantages for Franchisee
* brand already etsablished
*given help in running business
Disadvantages for Franchisee
* Less Freedom
1 user(s) are reading this topic
0 members, 1 guests, 0 anonymous users