• 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. English for business

    Long term relationships need a greater complexity of behavior. Difficult people hope that due to their behavior we will either start to give priority to their wishes or that you will leave them alone. Difficult people are not restricted to the workplace. Working relationships have few emotional ties and are more detached whereas within the home environment lurks a complex web of history and emotions.

  2. Business Studies

    A target market is a group of consumers for whom a particular product has been developed > Some products appeal to all consumers, others have very limited appeal > To identify the appropriate target market for its products a business needs to understand the nature of consumer markets Types of

  1. Business studies - Business Plan

    This will allow me to see the problems and advantages each of them will cause to my future business, after this I will then look at situations in which they can be used to aid me with my business and for solutions for the problems that they may cause.

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

    * Water pollution because of people dumping waste. * Noise coming from factories and traffic. * Natural habitats being destroyed because of building works on premises. These can be controlled by such things as: o Special laws which unauthorized firms to pollute the environment. o Making petrol and diesel prices higher so people do not use their car as much as they normally would.

  1. Applied Business Unit 1

    target and are using their given budget efficiently and investigates thoroughly if there is concern. The budget given to individual departments is calculated in relation to their services and their requirement of funds in order to function properly for e.g.

  2. world development

    Knowing the figures enables them to make decisions more easily and accurately as they have a clear understanding of where there business is heading knowing whether they are succeeding or failing in their business. There are different types of financial experts which are employed: Management accountants they monitor departmental budgets

  1. Business studies-create your own business

    Promoting is letting people know about your service or product, which is why it's so important. I will be promoting using leaflets, which is a cheap but effective option, which will be suitable for my situation as I will not have enough capital to use a better method of promoting such as on TV.

  2. Ownership, Location and Aims and Objectives of Lex Transfleet and Express Diner

    At Lex they are PLC, this is very hard to consult with all the shareholders because there are over a million shareholders but in LTD there are 2-50 shareholders which is easy to communicate with all the shareholders. It would also be hard to have a share the profit or

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