What is a franchise?

‘Business format

franchising’franchisee

franchisor

franchise

grants a licence to

trades under name of franchisor

Discussion

Discussion

What types of businesses tend to be franchises?

clothes stores?

Fast food outlets?

hairdressers?

Can you think of any others? What popular franchises do you have in your country?

Put these stages of researching a franchise into the correct order.

Setting up a franchise

a) Shortlist two or three franchises and talk to some of the franchisees running these businesses.

b) Decide how much money you can afford to invest and how much you need to borrow.

c) When you have all the information you need, complete the application form of the most suitable franchise.

d) Identify the type of business you would like to operate in.

f) Do some market research.

e) Contact the franchisees operating in that business and ask them to send you information.

a) Shortlist two or three franchises and talk to some of the franchisees running these businesses.

b) Decide how much money you can afford to invest and how much you need to borrow.

c) When you have all the information you need, complete the application form of the most suitable franchise.

d) Identify the type of business you would like to operate in.

e) Contact the franchisees operating in that business and ask them to send you information.

f) Do some market research.

five years ago

for three years

£12,000 £2,50050%

Maria mentioned these figures when talking about her franchise.

Can you remember what they refer to?

Setting up a franchise

five or six times

three months

€50,000

a profit a phone call homework business market research a decision

somebody a favour a break a chance an arrangement a risk

overtime a recommendation an excuse an exam serious work

make do take

Verb collocations

2 How often do you need to _____ a break from work?

3 When was the last time you _____ a risk?

5 Have you _____ anyone a favour this week?

4 What kinds of companies would you like to _____

1 What was the last big decision that you _______?

Discussion

made

take

took

do

done

business with?

2008

my birthday

yesterday’s meetingTuesdaynearly a yearwe moved offices

last night9 o’clockagestwo weeksfive hoursa long time

for or since ?2008

last nighta long timetwo weeks

agesTuesday

nearly a yearwe moved

officesfive hours

9 o’clock

yesterday’s meeting

my birthday

She’s been in charge for six months.

They’ve owned stores in the US for three years.

Max has lived in Hong Kong since 2000.

We’ve had this problem since the new machinery was installed.

He’s been ill since last Thursday.

I’ve known about the takeover for a few days now.

AnswerQuestion

2

4

3

5

1

6

How long has Max lived in Hong Kong?

How long has she been in charge?

How long have they owned stores in the US?

How long have you known about the takeover?

How long has he been ill?

How long have you had this problem?

Asking questions

Travelling by air – what do you need to do?

check in

deskpassport control

security check

departure lounge

duty free shop

Discussion

Travelling by air – what do you need to do?

check in

desk

passport control

security check

duty free shop

Discussion

departure lounge

Handling questions

Some people say that, but it isn’t I’m afraid I can’t go

into the details here

OK, I’m glad you asked me that

A Prepare to talk for two minutes about your plans for the future. Where do you see yourself in five years time?

B Prepare a list of questions to ask your partner.

That’s a very good question

No, on the contrary

Notes:

Flat area, near large river, flooding? High humidity, parts would be kept inside

None of local suppliers have necessary control units. Will need to fly in from UK at start

Need to invest in some retraining programmes

Road connections poor, especially in monsoon. Highway won’t be finished for years

Negative pointsPositive points

Location

Infrastructure (roads, railways)

Staff

Suppliers

Constructingthe factory

Cheap landNo problems to expand

Good rail connections to MumbaiNo plans for highway

Plenty of skilled workers as small factories in area already

Lots of suppliers in area

Only six months With paperwork could take up to a year

hates risk1 2 3 4 loves risk5

Are you a risk taker?

1 Where would you put yourself on this scale? Give reasons.

2 Give some real life examples when you have taken or avoided taking risks.

3 Would you like to set up and run your own business? Why? Why not?

Finnley’sName of franchise

2000

Convenience food

£18,000

Toasties Classic Cotton Clothes

Established

Business area

Franchise fee

Cost of fittings etc.

No. of franchises

Typical customers

Growth potential

?

People in late twenties or thirties

530

Disabled and/or older people

1999 1989

Home care Organic clothing

£20,000 €7,500

€60,000 £30,000-£40,000

300+ Almost 100

Young professionals, office workers,

students

High ? High