Franchising (Edexcel GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is franchising?
What is franchising?
A business expansion method using licensing
Who is the franchisor?
Who is the franchisor?
The original business that owns the brand
What is a franchisee?
What is a franchisee?
The entrepreneur who purchases the right
What is the typical range for ongoing royalty payments?
What is the typical range for ongoing royalty payments?
4-8% of gross sales
What payments must a franchisee make?
What payments must a franchisee make?
Initial fee, royalties & marketing fees
What do franchisees receive when they purchase a franchise?
What do franchisees receive when they purchase a franchise?
A comprehensive business package
Why does franchising reduce business risk?
Why does franchising reduce business risk?
It operates under a proven business model
What marketing advantage does franchising provide?
What marketing advantage does franchising provide?
Expensive advertising costs are shared
What is a key disadvantage regarding business freedom?
What is a key disadvantage regarding business freedom?
Limited ability to make independent decisions
How can franchisor problems affect franchisees?
How can franchisor problems affect franchisees?
All franchisees suffer the consequences
How does franchising allow the franchisor to expand?
How does franchising allow the franchisor to expand?
Through licensing rather than direct investment
Who is franchising best suited for?
Who is franchising best suited for?
Those willing to follow established systems