Franchise Business Definition Bbc Bitesize

A true business format franchise occurs when the owner of a business the franchisor grants a licence to another person or business the franchisee to use their business idea often in a specific geographical area.

Franchise business definition bbc bitesize. The franchisor is the business whose sells the right to another business to operate a franchise they may run a number of their own businesses but also may want to let others run the business in other parts of the country. A share is a portion or percentage of a company. A look at a franchise gardening business from the point of view of a franchisee and the franchise owner. An alternative is to buy into an existing business and acquire the right to use.

Learn and revise about business ownership including sole trading partnerships limited companies and franchise with bbc bitesize gcse business studies. Private sector franchises. Franchises are a significant part of business life in. The franchisee of green thumb gives a positive account of his 28 000 investment and the.

One of the main downsides of. The basic idea for a franchise is this. A franchisor grants a licence the franchise to another business the franchisee to allow it to trade using the brand or business format. The trick is to remember that the franchisor is in charge the franchisor is the original owner of the business idea.

This is the most common form of franchising. Radio 1 s dj greg james explores the franchise business model of walls ice cream while at the reading festival. An entrepreneur can opt to set up a new independent business and try to win customers. It does this by providing the person or other business with a licence.

A franchise is bought by the franchisee once they have purchased the franchise they have to pay a proportion of their profits to the franchiser on a regular basis. Private limited companies pay corporation tax corporation tax is a tax on the profits of a business. Learn and revise about business ownership including sole trading partnerships limited companies and franchise with bbc bitesize gcse business studies.