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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
suggestion regarding credit limit. should it be approved or not what should be the amount of credit limit that electronics give to booth plastics
CAPITALISATION RATE=0.01 EARNINGS PER SHARE(E)=10 ASSUME RATE OF RETURNS ON INVESTMENTS (R):15
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Examine the Examples of political risk within countries Outbreak of national war, unrest, civil war or riot. Nationalisation of industriesfor example confiscation of as
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A. Mitt starts Examine Your Zipper Incorporated ("XYZ") in 2012 by selling common stock of $12,000,000. He promises the investors in his company a 15% return on their capital. B
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