Define the term- franchise, Financial Management

Assignment Help:

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

 


Related Discussions:- Define the term- franchise

Calculate the annual revenue - capital budgeting analysis, The Donut Shop, ...

The Donut Shop, Inc. is planning to add a 2nd Donut Shop by opening a new store across from Webster University. A survey of the area has already been completed at a cost of $150,00

Share price movements, The management of Nelson plc wish to estimate their ...

The management of Nelson plc wish to estimate their firm's equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

Participants in hedge funds, Participants in Hedge Funds: The Sponsor ...

Participants in Hedge Funds: The Sponsor and the Investors Sponsors are promoters and generally, they hold a profit share on percentage for the capital invested in the Fun

WACC, The following is the existing capital structure of Company XYZ Ltd. O...

The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.1

Illustrate working capital cycle in a manufacturing business, Working capit...

Working capital cycle in a manufacturing business Average time raw materials are in stock (raw materials/purchases x 365 days)   Plus   Time

Considerations before a mbo, Considerations before a MBO An MBO is just...

Considerations before a MBO An MBO is just like any other take over and same consideration must be applied. (i)  Potential of the business. Is it worth buying? What does the

Operating cyle, discuss the applicabilty of the operating cycle in a vegeta...

discuss the applicabilty of the operating cycle in a vegetable growing business

Budgeting, Budgeting: All business owners should recognise and understa...

Budgeting: All business owners should recognise and understand the importance of preparing and maintaining a financial budget for their business. Budgets are an essential fi

Common size and index analysis, sk company had the following balance sheets...

sk company had the following balance sheets and income statements over the last 3 years

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd