Asked by Huamei Liuxue on Sep 24, 2024
Sharing contracts in franchising is when
A) The franchisor pays a fixed franchisor fee
B) The franchisor pays a percentage of the revenue or profit of the restaurant
C) The franchisor fee is decreased to 50%
D) The franchise gets to share the franchise fee with other restaurants
Sharing Contracts
Agreements that involve distribution of profits or losses among parties based on pre-determined criteria.
Franchising
A method of business expansion where a company (franchisor) allows individuals (franchisees) to operate a business using its trademarks and business model.
Franchisor Fee
A payment made by a franchisee to the franchisor, typically including an upfront purchase price and ongoing royalty fees, for the right to use the franchisor's brand, products, and operational support.
- Acquire knowledge on the essential principles of franchising and its superiority over company-operated stores.
- Identify the connection between franchisor and franchisee, including their respective duties and responsibilities.
Learning Objectives
- Acquire knowledge on the essential principles of franchising and its superiority over company-operated stores.
- Identify the connection between franchisor and franchisee, including their respective duties and responsibilities.