Franchising, Outsourcing, and Leasing (Grade 11 NSC Matric Business Studies): Flashcards

Paying to use another co's name, products & business model

Owner of original business idea, brand name & operating methods

Ongoing payments, typically % of sales, paid to franchisor

Franchisees must follow franchisor's rules on running business

Hiring another co to handle tasks previously done internally

Companies can concentrate on main activities, not secondary tasks

Loss of management control over work quality & performance

Renting business equipment/property instead of buying it

Lessee rents asset; Lessor owns & allows use for payment

Lessee never owns asset, no appreciation or ownership benefits