FRANCHISE

Franchising is a form of business that combines many of the aspects of small

business proprietorship with the know-how, trademarks, and reputation of an es-
tablished, often very large, corporation. A Franchise is usually a licensing agreement
that permits an individual to own his or her business while benefiting from the know
—how, trademarks, and reputation of the established firm. In return, the individual
owner-the Franchisee-pays the licensing Company-the Franchisor-an initial start up
fee, a royalty from part of the business sales or profits, and sometimes an additional
royalty for a share in national advertising programs.

The franchise offers persons who are relatively inexperienced in a particular

field a chance to own and operate a business. In effect, it is a form of sole propri-

etorship. The franchisor provides the franchisee with a facility, operating advice,

and marketing support. In return, the franchisee can be expected to make an initial

cash outlay of anywhere from $10,000 to $150.000 for the right to buy into the

business. The total capital commitment required may be as high as $ 1 million for

a first—class franchise (like McDonald’s) in a prime location. Franchise ownership

usually demands hard work and long hours, and, in most instances, financial
rewards are modest, although there are franchisees who have become millionaires.
Like all business, franchising is risky. Additionally, there have been notable cases of
unscrupulous franchisors who were more interested in selling franchises
(pyramiding) than in supporting them.

Many high school and college students have found their first jobs as employees of a
retail franchise, especially fast-food outlet. Typically, these jobs prove to be less
than satisfactory to most young people. The work is generally part-time, and it is not
unusual for the employee to be asked to work only during the peak dining hours.
Employees are paid the minimum wage, and even this compensation is becoming
more and more of a burden for the franchisee. Jobs are learned in an hour or two,
often with the aid of filmstrips or other visual aids. Supervision is provided by unit
managers, who are usually in their early twenties, and by assistant manager
trainees, who are often only slightly more experienced than the employees they
supervise. The trainees work long hours and are not highly paid, although those who
remain in the industry may eventually draw annual incomes of $25,000 to $ 50,000.

GLOSSARY
Franchise (n) : waralaba

know-how (n) : keahlian

modest (adj.) : sedang

outlay(n) : pengeluaran ·

outlet (n) : penyalur

unscrupulous (adj.) : tidak berprinsip

remain(v) : bertahan

A. COMPREHENSION QUESTIONS
Answer the following questions.

1. What is franchising?

2. Who is franchisee?

3. Who is Franchisor?

4. What does the second paragraph tell about?

5. How does a businessman go into his franchise?

6. What do the franchisors hope from their franchisee (in term of the aid they

provide)?

7. What is the possible harm of franchising?

8. Who is (are) the supervisor(s) of franchising?

Answer the following questions:

1. What are the advantages of franchising?

2. What are the disadvantages of franchising?

3. Which one is the most dominant?

B. VOCABULARY BUILDING

What do the following pronouns refer to in the text.

1. his or her (p.1, line 4)

2. it (p.2, line 2)

3. them (p.2, line 12)

4. their (p.3, line 1)

5. these (p.3, line 2)

6. this (p.3, line 5)

7. their (p.3, Iine 8)

8. they (p.3, Iine 9)

Use the correct noun, verb, or adjective forms in the sentences

below. Change the grammatical form of the words if necessary.

1. combine

Our company will ______ two systems.

Now, we’re selecting the most appropriate __________

2. support

A franchisor ________the franchisees in several aspects.

This _________ is useful for the franchisees.

However, everybody has to be _________ in playing his or her role.

3. supervise

Mr. Ardiansyah is the new __________ in our company.

He __________ the employees by guiding, teaching, and motivating them to reach

their potential abilities.

He gives daily ___________

4. interest

Franchising is an ___________ business.

Many people are ______________ in doing it.

Find the synonyms of the following words in the reading text.

Write the paragraph and line in which the answer is stated.

1. possibility

2. profit, gain

3. require, need

4. arrangement, promise, or contact

5. beginning, first

C. STRUCTURAL REVIEW: Subordinators

(because, although, whether, and whenever)

Notice the following sentences.

1. Franchising is risky because there are some unscrupulous franchisors.

 Because there are some unscrupulous franchisors, franchising is risky.

2. The trainees are not highly paid although others who work in the industry
may draw higher annual income.

 Although other trainees who work in the industry may draw higher an-

nual income, the franchising trainees are not highly paid.

3. Whether or not the franchisees have become millionaires, their financial

rewards are modest.

 The franchisees financial rewards are modest whether or not they have

become millionaires.

4. I Will use this book whenever I need.

Whenever I need, l Will use this book.

Make new sentences using because or although. Use the word

which is the most appropriate.

Examples : l Wore a jacket. It was very cold here.

 l wore a jacket because it was very cold here.

l didn’t wear any jacket. It was very cold here.

 l didn’t wear any jacket although it was very cold here.

1. Ryan completed the course. It was difficult.

2. There was a terrible accident. We came late to the meeting yesterday morning.

3. We accomplished this work earlier. There are many obstacles.

4. Every one likes him. He is a wise man.

5. Yohan always works hard. He wants to be a successful businessman.

6. Yulia cannot visit her parents this month. She hasn’t enough time.

7. Fannie came to work this morning. She was not feeling well.
8. Azis bought the antique clock yesterday. its price is very expensive.

9. Caroline saves her money. She wants to buy a new house.

10. He sold his car. His father forbade him.

Answer the following questions, using Whether or not.

Examples ; Will you go to Canada if your brother or sister goes?

 if I will go Whether or not my brother goes.

 or : I Will go Whether or not my sister goes.

1. Can you finish your work if someone helps you?

2. Can you study when your roommate makes a noise?

3. Will you come to the library if you have any assignments to do?

4. Can you study if you are tired?

5. Do you continue doing your homework if there is your favorite program on

television?

8. Do you understand English when it’s spoken fast?

7. Do you join lecture if it rains?

8. Will you take Japanese course if your parents take you to Japan?

Answer the following questions.

Example : When do you play ice skating?

 I play ice skating whenever the weather is nice.

1. When do you practice your English?

2. When do you read?

3. When do you go to a bookstore?

4. When do you visit your best friend?

5. When do you use your dictionary?

8. When do you write a story?

7. When do you go to the beach?

8. When do you study?