Transcript Franchises

Franchises
EntrepreneurshipPlease get out notebooks and books
and get ready to take notes!
Definition of Franchise
 A legal agreement
to begin a new
business in the
name of a
recognized
company
Franchisee (buyer)
Buys the right to a product, process, or
service; training and assistance in setting
up the business; and ongoing marketing
and quality support while the business is in
operation
– Not as risky!!!
– Pay 3-8 % Royalty
Seller - Franchisor
Selling its planning and management
expertise
Can restrict how you run your business
Locations of other franchisee may be too
close
Success Stories
Read the story on Page 61 about Ray Kroc
Take notes in your notebook about the
important aspects of this franchise
The First Franchise Empire
 1954 – Ray Kroc
 Bought from
McDonald Brothers
 10- year
 1961 bought out the
brothers
 1966- 800
 Today – Over 30,000
Other places to find businesses
Business broker – someone whose
job is to bring buyers and sellers
together
Start your own – Page 62-63
Directions
On Page 62 answer the 7 questions (in your
notebooks) about the business you plan to
start in this class
Read the “What you must do” section on
Page 63 and formulate ideas for your
business