• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Outline the characteristics of a franchised business.

Extracts from this document...

Introduction

Transfer-Encoding: chunked ´╗┐The last type of business is a franchise. This is the biggest business there is. A franchise is where a large company allows smaller businesses to use their name there are the franchisor and a franchisee. The franchisor allows the use of their business name for an agreed length of time and provides materials, training and advice. The franchisee must provide the money to start their business and the franchisee must make regular payments. An example of a franchise is Subway and Hertz. Advantages of a franchise is that there is high chance of success as it?s easy to borrow money. ...read more.

Middle

Also supplies have to be purchased from the franchisor which can be expensive and they have to make royalty payment to the franchisor. Franchisee cannot make all the decisions and they cannot sell the franchise without permission which can lead to many difficulties. The entrepreneur will also need to consider different types of markets as well as different ownerships. There are many different types of markets, these include local, regional, national, EU and global. Location is very important to a business. A small business (such as a sole trader) would start in a local market and as they start to be more successful and make more money, they will start to expand to a wider market. ...read more.

Conclusion

A business plan, is a plan in a detailed document that sets out the future strategy and financial development of a business and how they will achieve their goals. This usually covers a period of several years. Business plans are very useful and have many benefits. For instance, a business plan can show strengths and weaknesses of the business idea and highlight financial risks involved. Therefore, if there are any issues the business can then find solutions for this before they become an issue. Furthermore, a business plan can help obtain finance. When the business is asking for a loan, the business manager will ask for the business plan, if they don?t have one they won?t get any finance. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Fish and Chip Shop Business Plan Outline

    Even if you are taking over existing premises, these are still things you should look at - could there be some clue as to why the previous occupant moved on? "You need chimney pots, people living all around," says David Beedle.

  2. English for business

    *standards (how well you do things) *urgency (how quickly you do things) Why are interruptions urgent?( when the phone rings or on there is someone at the door) Do you treat all work for a particular person as important? Do you check how important something is when you receive work?

  1. Business Plan. After putting a lot of thought into what kind of business we ...

    by doing this we have set ourselves a target of selling 1349 a month, 337 a week so approximately 48 a day. This is a reasonable amount for a new business as it is not a high target to meet.

  2. Is it a sound business decision to locate a Coffee Republic franchise in Finchley ...

    This provides information on the nearest coffee shops in Finchley Central, so this can help me evaluate the amount of competitors in the area. The final piece of secondary data I will be using is the information obtained from the Coffee Republic franchise pack found on the website, which has

  1. world development

    through bad weather or vehicle breakdown. The Finance department - All businesses need income to make a successful business and pay the bills, finance staff keep track of all the money earned and spent so that the managers know how much has been made, their profits, turnovers etc.

  2. Business Plan

    After some time customers will be eligible to purchase some books at reasonable prices. There would be sales of books, CD's, DVD's and everything else we offer as a reward to would be long time customers.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work