1. Franchises

2. Franchise- -
-A form of business in which a
company sells the rights to use its
name and sell its products.
Example: McDonald’s
Subway

3. How the Franchiser Makes Money by
Selling to the Franchisee
Franchisee pays a flat fee to
the company.
2. Franchisee must pay a portion
of future profits
to company.

4. What the Franchiser Does for the
Franchisee
Help find a location.
Help train employees
Help build and
set up business.

5. Advantages of Franchising
Name Recognition
Proven way of
doing business.
3. Free Advertising

6. Disadvantages of Franchising
Loss of Control - - give up freedom
to run the business your way.
2.Legal Issues - -one side
may fail to hold up his
end of the deal.