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Chapter 3 - Coggle Diagram
Chapter 3
FRANCHISER
advantages
products sold under their control
applicants are carefully selected
don't have to spend large amounts of money
disadvantages
control issues
cost of supporting franchisees
possibility of conflict
FRANCHISEE
advantages
tried and tested brand name
specialist advice and training available
easier to get bank loans
franchiser carries and market research and gives market support
disadvantages
supplies have been bought from franchiser
royalty payments
no control over what is being sold and how
FRANCHISE
a business with a well-known brand name lets someone set up their own business using that brand
advantages
established a market share
financing may be easier
franchisor gives support
recognised brand name
risk of failure is reduced
no prior experience is needed
able to compete with big businesses
disadvantages
costs may be higher
restrictions
franchisor might go out of business
difficult to sell franchise
franchisee could give business bad rep
profits are usually shared
may only be for a fixed time period
COOPERATIVES
a business that is owned and run by its members(employees+customers)
advantages
legally straightforward
all involved in working towards a common goal
liability is usually limited
high quality of service
stakeholders should benefit because of approach it takes
disadvantages
capital is limited
weak management
employees may feel as if they deserve more as it progresses
slower decision making
no guarantee of success