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franchises - Coggle Diagram

- - - - Regular royal payments are received
      - Franchisees are usually more ambitious
      - Risks are reduced
      - Most franchised business are profitabl
      - They can expand without investing large amounts
      - Expansion is much faster
    - - The initial high cost of the trial operation
      - On-going costs of inational advertising, training and support of franchisees
      - The companies trade name and reputation can be ruined
  - - - Banks will be more willing to lend money to a franchisee
      - The franchisee benefits from continuous support from the franchisor
      - The business has a greater chance of success as the product will have a good brand image
      - Advertising and training is usually paid for by the franchisor
    - - You need to continuously pay the franchisor(royalties)
      - May not be able to sell the business without the franchisor’s approval
      - less independence than a sole trader