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