Asked by Gelyn Sumang on Sep 24, 2024
The manager of Fatty Foods is thinking about retiring.He has two options: to leave his stores as a company stores,to be managed by a salaried manager,or to sell some of them as franchises.The franchisor however is offering a really low franchisor fee for the store.What would be his best bet?
A) Let the stores stay company stores
B) Sell them off as franchises
C) Shut down the business completely
D) Never retire
Franchisor Fee
A payment made by a franchisee to a franchisor, typically for the right to use the franchisor's trademark, operational system, and ongoing support.
Franchises
Business models that allow individuals to operate their own outlets of a larger company, using its brand, processes, and resources.
Company Stores
Retail establishments operated by a company that sells its own products to its employees or the general public, often in a monopolistic or semi-monopolistic market.
- Gain insight into the core tenets of franchising and the perks it offers compared to owned-by-company outlets.
Learning Objectives
- Gain insight into the core tenets of franchising and the perks it offers compared to owned-by-company outlets.