1. Starter Beauchamps High School

2. GCSE Business Studies Franchise Beauchamps High School

3. Will be able to evaluate a franchise business Evaluation ~ GCSE Grade A* Will be able to propose successful franchises Synthesis ~ GCSE Grade A Will be able to analyse reasons for becoming a franchise Analysis ~ GCSE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GCSE Grade C Will be able to explain the purpose of a franchise Comprehension ~ GCSE Grade D Will be able to recall key terms franchise, franchisee and franchisor Knowledge ~ GCSE Grade E

4. Franchise Beauchamps High School Theory Notes The right given by one business to another to sell goods or services using its name

5. Franchisee Beauchamps High School Theory Notes The business that agrees to provide a branded product, under licence by a franchisor

6.  Mrs Lewis-Taylor owns the McDonalds in South Woodham Ferrers (in the Asda).  She agrees to provide the McDonalds brand food under licence from McDonalds Example Beauchamps High School

7. Franchisor Beauchamps High School Theory Notes A business that gives franchisees the right to sell its product in return for a fixed sum of money or royalty payment

8. McDonald Franchise Beauchamps High School

9. Why use a franchise? Beauchamps High School Why use a franchise?

10. Advantages of a franchise? Beauchamps High School Why use a franchise?

11. Benefits of franchise Beauchamps High School Theory Notes BenefitsWhat Toni & Guy do TrainingToni & Guy Academies provide basic/advanced training EquipmentSells equipment including hair styling equipment, TVs, computerised tills Materials to useFranchisees can only use Toni & Guy products in their salons Finding customersNational advertising done by HQ Back up servicesToni & Guy provide advice, loans and insurance cover Brand nameToni & Guy is known nationally, same high standards in every Toni & Guy outlet. Exclusive areaFranchises are not in direct competition with each other, given exclusive area to draw customers.

12. Cost of franchise Beauchamps High School Theory Notes  Not all free  Average amount needed to startup franchise is £250,000  Fixed sum at start of agreement  Monthly royalty e.g. 10% profits

13. Against the Clock

14. Task Beauchamps High School

15.  Complete the table Task Beauchamps High School AdvantagesDisadvantages

16. Task Beauchamps High School AdvantagesDisadvantages Be own bossInitial investment is very high Selling with established known, greater chance of success Less independence than sole trader – no creativity in menus Products are well tried and tested Can’t sell the business without the franchisors permission National advertising – paid for by franchisor Pay royalties out of profits Theory Notes Theory Notes

17.  Complete the Franchise questions Task Beauchamps High School

18. Plenary question In the future, if you had the opportunity to open your own business or buy a franchise which would you choose? Justify your answer. Beauchamps High School

19. Will be able to evaluate a franchise business Evaluation ~ GCSE Grade A* Will be able to propose successful franchises Synthesis ~ GCSE Grade A Will be able to analyse reasons for becoming a franchise Analysis ~ GCSE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GCSE Grade C Will be able to explain the purpose of a franchise Comprehension ~ GCSE Grade D Will be able to recall key terms franchise, franchisee and franchisor Knowledge ~ GCSE Grade E