1. IB Business and Management 1.6 Franchising

2. Learning Outcomes Analyse the advantages and disadvantages of a franchise for both the franchisor and franchisee Evaluate the use of franchising as a growth strategy

3. FRANCHISING – WHAT IS IT?

4. What is a franchise? A franchise is an agreement or license which gives a business (the franchisee) the rights to operate using the name, logo and systems of another established business (the franchisor).

5. What’s This?

6. Video – How Franchises Work

7. How franchises work The franchisee invests the initial capital The franchisor supports the franchisee with training, marketing and advice The franchisee has to adhere to certain rules set by the franchisor The franchisee pays an agreed percentage of their sales/profits to the franchisor

8. Task – Subway Franchises Read the Subway Franchise Information Questions: What are the initial costs for the franchisee? What are the on-going costs? What support do Subway (franchisor) provide? What are the other benefits of being a Subway Franchisee?

9. Task – Create and fill in the table For the Franchisor AdvantagesDisadvantages For the Franchisee AdvantagesDisadvantages