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Business Studies IGCSEPDF 43
212 pagesrevision 46931
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Expansion is faster
Advantages
Continuity of business is
practiced
Advantages
Percentage of sale revenue is given to the
franchisor every year
Training, some aspects of administration, and
advertising are paid by the franchisor
Franchisee buys the licence; source of finance
Management is the responsibility of franchisee
Disadvantages
Expensive to ‘go public‘ (sell
shares as stocks)
Disadvantages
The franchisee
keeps some profit
Bad reputation if
poor management
Advantages and Disadvantages of Being a Franchisee
Advantages and Disadvantages of Being a Franchisor