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Franchise (licensing)
- Granting or licensing of the right to use systems, expertise,brandsknow how etc. to another organisation, generally in return for a profit share or sales royalty for example authorisation to sell a company's services or goods in a particular geographical place.One of the most famous illustrations is McDonalds with more franchised restaurants than any other franchise network.
- Rapid market expansion for franchisor.
- Expansion generally financed at least in part by the franchisee.
- Entrepreneurial spirit of franchisee for example better than perhaps a bureaucracy of using internal staff to expand organisation instead.
- Economies of scale achieved for instance management and overhead spread over more and more franchises as the organisation grows in size.
- Long-term loss of profit for franchisor
- Control over franchiser reputation can be costly to support
When an investor purchases non-callable or non-putable convertible bonds, he would be buying a non-callable/non-putable straight security and also buying a call o
explain the concept of working capital.what are the factors which influence the working capital?
Franchise (licensing) - Granting or licensing of the right to use systems, expertise,brandsknow how etc. to another organisation, generally in return for a profit share
Q. Determine Earnings per share? Current earnings per share = 100 × (4550 - 225)/ 5000 = 86.5 cents Earnings per share after one year = 100 × (4508 - 225)/ 5000 = 85.7 cents
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