Franchise

By: Charles Kaup

How franchises work

• A large company grants the right to a individual or or company to market, and sell their product in that area, and they in turn pay a fee to the large company

What is a franchisee/franchiser

• Franchisor is a person who allows the franchisee to to use the supplier’s trademark, and distribute their goods

• Franchise then pays the supplier a fee for using their product

History of Franchising

• In the 1840s several German ale brewers allowed certain taverns the right to market their ale

• Peddlers in early American history were also considered a form of franchising because of how they went town to town

More history of Franchising

• Singer Sewing Machine Company used franchising to distribute their machines over a large area

Advantages of Franchising

• An alternative to chain stores which avoids the investment and liability that a chain has

• Allows the franchisee to take advantage of the fact that the business or brand is well known

Still advantages of Franchising

• You’re less likely to fail if you work in a franchise

• Easier financing

Disadvantages of Franchising

• The Franchisor’s success is dependant on the Franchisee’s success

• Franchisee has little or no say on how the business is run

• Required to use the franchise’s supply network

MOAR disadvantages

• The fees from the franchisor take out a chunk of your profits

• Others might damage your business reputation

SEVEN ELEVEN

• A franchise of convenience stores• There doesn’t seem to be any in Lincoln so I’ve

never seen one out in the wild• They have more than 48,000 stores, even

more than McDonald’s • Company has its origins in 1927

Summary

• Franchises are more secure, and cheaper than chain stores

• 7 Eleven is a franchise that does franchise stuff• It has its advantages and disadvantages• Yay franchises

Credits? lol

• Thanks to the internet for providing me this information that I found with Google searches

• I do not understand the purpose of this slide• That is it

• Oh yeah I got most of my stuff from here and here and maybe here