gcse business studies. lesson objectives £to describe what being part of a franchise involves...
TRANSCRIPT
GCSE Business Studies
Lesson Objectives
£ To describe what being part of a franchise involves (using
franchisor and franchisee).££ To analyse two advantages of being a FRANCHISEE.£££ To evaluate two disadvantages of
being a FRANCHISEE.
Starter Activity
Entrance Card
What can you remember from LAST lesson???
A FRANCHISE is NOT a TYPE of BUSINESS
OWNERSHIP BUT A TYPE OF MARKETING ARRANGEMENT
Today I (the FRANCHISOR) am going to CONVINCE YOU all to become FRANCHISEES and be
part of the most successful fast-food restaurant in the world
ever!!! Anyone know who I am talking about?
ADD A VIDEO FOR MCDONALDS
Agenda
• Welcome!!!• What is a Franchise?• The advantages and disadvantages
of being part of a Franchise.• Background info about McDonalds –
your turn to do some work.Can I encourage you to take some notes during this
presentation.
What is a Franchise?
A Franchise exists where an already established business (the FRANCHISOR) offers for sale to other businesses or individuals (the FRANCHISEE) the right to use its products, services and logos.
…IN RETURN FOR A FEE (ROYALTY)
Advantages of becoming a Franchisee
• The franchise formula (in our case McDonalds) has been tried and tested and has been a GREAT SUCCESS!!
• The franchisor provides on-going support to the franchisee to sort out, if necessary, any problems.
• You will receive adequate training and advice on how to run McDonalds smoothly and efficiently.
Advantages of becoming a Franchisee
• No competition from other franchisees – why is this?
• National advertising and promotional campaigns will be paid for by the Franchisor.
• You will be told how much money you need to put into the franchise – this has been carefully forecasted to ensure survival.
• Reduced risk of business failure.
Disadvantages of becoming a Franchisee
• Substantial amount of capital from you to put into the franchise when you first start – REMEMBER you are buying the RIGHT to our BRAND!!!
• You won’t have TOTAL control over how you run your McDonalds restaurant – REMEMBER the Head Office have the FINAL say as to how things are run within any McDonalds restaurant.
Disadvantages of becoming a Franchisee
• We expect a % of your sales turnover, which we call a ROYALTY. We expect this each year. It is FAIR if you think about it!!!
• Any losses have to be covered by yourself!!!
• You might have a problem if you do not make enough profits to help cover the cost of your initial start-up amount.
