Other Organizations Chapter 8 Section 4

Franchise Semi independent business –Pays fees to a parent company –Rights to sell a certain product

Advantage Standardized quality –You know what you are getting Support –Training on how to run a franchise Parent companies pay for advertising –Although you could still pay Financing to help start the business Franchisers buy in bulk pass savings on

Disadvantage Fees and Royalties –Paid to the franchisee –Royalties share of the earnings Strict Operating Procedures –Must comply with the parent company Dress, hours… if not could lose the franchise

Must buy goods from parent company Limited product line –Cant sell Squishee at 7-11 –Taco Bell taco’s at McDonalds

Co-operative Business organization owned and operated by a group of individuals for their shared benefit –Consumer Sell merchandise to their members at a reduced price Make large purchases, can keep prices down Some charge for memberships Some require working at the store

–Service Banking services, health or legal help Lend money at lower rates –Producer Agricultural help sell products –Let farmers focus on growing

Nonprofit Organizations Want to benefit society –Museums, American Red Cross and YMCA’s Government exempts these groups from income tax Most offer services instead of goods –Professional Organizations Work to improve working conditions, image and skill levels –Keep workers up to date, trends, codes

–Business Associations Address codes of conduct Protect consumers Attract new business –Trade Associations Marking, and food processing –Similar ideas –Labor Unions Working conditions, wages, hours and benefits