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1. Definition of Terms:
a. Franchising- a method of distributing products or services involving
a franchisor, who establishes the brand's trademark or trade name and
a business system, and a franchisee, who pays a royalty and often an
initial fee for the right to do business under the franchisor's name and
system.
b. Franchisee- a small-business owner who operates a franchise.
c. Franchisor- a person or company that grants the licence to a third party
for the conducting of business under their brand name.
d. Royalty Fee- the monthly re-occurring fee a franchisee pays to the
franchisor.
2. Give 5 advantages of Franchising
-Business assistance they receive from the franchisor.
-Brand recognition
-Buying power
-Lower risk
5. ESSAY: