1. Franchising
UNIT 4

2. CONTENTS Key Vocabulary: Franchising
Language Focus: Suffixes, Adverbs, Used to do vs. Used to doing
Writing: s

3. KEY VOCABULARY
franchisor - is the person who gives the license or permission to the franchisee.
franchisee - is the person who receives the rights of conducting the business from the franchisor
franchise fee (front end fee) - the initial sum of money paid when purchasing a franchise
management services fee – money paid by the franchisee for the assistance and advice
advertising fee - fee paid by the franchisee to the franchisor as his share of the corporate advertising costs
operations manual - guidelines for the franchisee on how to operate the franchised business
master franchisee - main franchisee within a specified geographical area

4. Possible franchisors in the following sectors:

5. Listening, pg. 35
capital - money or other assets owned by a person or organization.
expand - become or make larger.
supplier – a party that delivers goods or services.
sources - a place, person, or thing from which something comes or can be obtained.
bet - risk something, usually a sum of money, against someone else's on the basis of the outcome of a future event, such as the result of a race or game; feel sure.

6. Listening, pg. 35

7. POSSIBLE EXAM QUESTION
What are advantages and disadvantages of a franchise system for a franchisor/franchisee?

8. Advantages
Advantages of a franchise system for FRANCHISEE (prednosti franšiznog poslovanja za onoga koji KUPUJE LICENCU): S/he uses a franchisor’s established system or format. (Koristi se već utvrđen sistem ili format poslovanja). In addition, the franchisor provides an operations manual which contains all the information that the franchisee needs. (Kao dodatak svemu, prodavac licence obezbeđuje uputstvo za rad koje sadrži sve informacije koje su potrebne kupcu licence).
Advantages of a franchise system for FRANCHISOR(prednosti franšiznog poslovanja za onoga koji PRODAJE LICENCU):Selling the right to operate a business is a source of income (front end fee; advertising fee; management services fee). Selling the right to operate a business in a particular area provides an opportunity to expand his/her business.

9. Disadvantages
Disadvantages of a franchise system for FRANCHISEE (nedostaci franšiznog poslovanja za onoga koji KUPUJE LICENCU): Franchisee needs to pay an initial sum of money (franchise fee or front and fee) to the franchisor for the services provided. (Kupac licence treba da plati onome koji licencu prodaje inicijalnu sumu novca za pružene usluge). Running a franchise requires hard-work. (Vođenje franšiznog biznisa zahteva naporan rad). Some conflicts / disagreements may arise. (Mogu nastati konflikti / neslaganja).
Disadvantages of a franchise system for FRANCHISOR (nedostaci franšiznog poslovanja za onoga koji PRODAJE LICENCU): A lack of control over franchisees (nedostatak kontrole nad onima koji su kupili licencu). By allowing other businesses to use their name, franchisors may lose reputation (moguć je gubitak reputacije, jer se drugi koriste imenom njihove kompanije). This is not as quick a method of growth as mergers or acquisitions (ovo nije tako uspešan metod rasta poslovanja kao merdžeri ili akvizicije)

10. s, pg. 42

11. s, pg. 43

13. FRANCHISOR OR FRANCHISEE

14. used to + infinitive and be/get used to used to + infinitive We use ‘used to’ to talk about things that happened in the past – actions or states – that no longer happen now.
She used to be a long distance runner when she was younger.
I used to eat meat but I became a vegetarian 5 years ago.
be/get used to + noun or the gerund – the ‘ing’ form of a verb.
If you are used to something, you are accustomed to it.
I am used to getting up so early. I’m tired all the time.
He’s not used to the weather here yet.
Be/get used to’ can be used with past, present and future tenses.
You might find it strange at first but you’ll soon get used to it.
He wasn’t used to the heat and he caught sunstroke.