Format operations manual master franchisee franchise fee
Date: 2015-10-07; view: 461.
Complete the passage below using the appropriate words or phrases from the box.
Now sum up everything you know about the rights and obligations of the franchisers and the franchisees.
franchisor management services fee franchise agreement advertising fee franchisee
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Franchising can be defined as a business system in which a company (or 1____________________) sells an individual (or 2____________________) the right to operate a business using the franchisor's established system or 3____________________ . The franchisee is thus able to take advantage of the franchisor's brand names, reputation and experience.
As part of the contract (or 4____________________) the franchisee pays an initial sum of money, known as a 5____________________ to the franchisor and, in addition, agrees to pay a 6____________________ in exchange for continuing advice and assistance which is usually calculated as a percentage of annual turnover. In certain cases the franchisee may also pay an 7____________________ to contribute to the franchisor's annual advertising and marketing costs. It is important to understand that the franchisee also has to find the necessary capital to open the business.
Once the contract has been agreed, the franchisor provides an 8____________________ which is a document containing all the information that the franchisee requires in order to manage his or her business. In some cases a franchisor may appoint a 9____________________ to supervise all aspects of the development of the business inside a territory.