GGR252H5 Lecture Notes - Lecture 3: Canadian Identity, Marketing Strategy, 3G Capital
Document Summary
When a large corporation is opening up a new branch, outlet or store, it has two choices about how the store will be run: the store will be directly run by the company (directive corporative store) Individuals who have the money can apply to buy the right to operate one of these retail outlets on behalf of the corporation: the cost of operating varies depending on profitability and variability of franchises. Franchiser the person who owns the store (the company) Franchisee has a specific range of how they can operate the store they may be able to decide how much staf to schedule in a period of time; determine what hours they are open; have some discounts. Products offered, imaging, product names are pre-determined so the franchisee cant change any of that without the permission of the franchiser. Franchisee owner collects a share of profits as income while managers are primarily competent with the salary.
