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

Call provisions, The issuer's right to call back the issue before the...

The issuer's right to call back the issue before the maturity date is referred to as a "call provision". In case of asset-backed securities, the trustee is grante

Cost of capital, The Nu-Nu Brothers Inc. (NNBI) has the following capital s...

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income

MM., What are the assumptions of MM(Modigliani Miller) approach?

What are the assumptions of MM(Modigliani Miller) approach?

Project, AThe project is expected to have an initial outlay of $200million ...

AThe project is expected to have an initial outlay of $200million and generate cash inflows of $64million for the next 12 yearssk question #Minimum 100 words accepted#

Major proportion of the maximum financing requirement, Q. Major proportion ...

Q. Major proportion of the maximum financing requirement? Whether the credit terms themselves is able to be changed may depend upon the credit terms of competitors when set alo

Compute the expected profit, A drug company has developed a new painkiller ...

A drug company has developed a new painkiller for chronic pains, although it is doubtful whether the new drug actually has any effect. The company conducts a double-blind experimen

Pass-through vs. pay-through structures, In a pass-through structure,...

In a pass-through structure, each certificate holder will be allotted a proportion of the cash flow from the underlying pool of loans or receivables on a pro rat

Highest earnings-per-share, McGovern Company is comparing two disimilar cap...

McGovern Company is comparing two disimilar capital structures - an all-equity plan (Plan I) and a levered plan (Plan II).  Under Plan I, the Company would have 700,000 shares of s

Private sector securities - inter corporate investments, Corporates g...

Corporates generally raise funds from the Inter Corporate Deposit (ICD) markets. These instruments generally carry interest rates higher than the other short-term

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