AS BusinessFranchises

Something beginning with….

Today

• Revise what we covered yesterday

• Understand what a franchise is and how they work

• Research different types of franchises

Franchising

and

Business

Start-ups

There is another way…

The basic idea

Franchisor grants a licence

(franchise) to another business

(franchisee) to allow it trade

using the brand / business

format

Franchise Costs• In addition to the usual

operating costs (e.g. staff, rent, gas & electricity)

• Initial fee: £5k – 200k• Service fee: % of sales (5-

20%)• Advertising levy: joint pot

to fund brand promotion• Mark-ups: may have to

buy stocks from franchisorO2 is expanding in the UK via franchised

shops

Choose a Franchise

• Download the Franchise research sheet from Firefly

• Pick a company and research their franchise details on the company website.

• Use the information to complete the table below.• Use bullet points and pictures where necessary,

but don’t cut and paste text. Make sure you provide as much information as possible.

• Once you have completed your research, print it out and come back to the lesson ready to explain what you think of the franchise opportunities with your chosen company.

Homework

• Complete the case study on Domino’s Pizza on page 13 of your text book

• Due in: Tuesday 17th September

• Make sure that you answer questions in detail = 2 sides of A4

• Analyse = discuss advantages and disadvantages of an idea

Today

• Revise what we covered yesterday

• Understand what a franchise is and how they work

• Research different types of franchises

Advantages and Disadvantages

• It’s not that easy…

• List as many advantages and disadvantages that you can think of for the franchisor and franchisee