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.