LAW 525 Chapter Notes - Chapter 8: Financial Statement, Counterclaim, Arthur Wishart
Document Summary
Operating costs may be reduced through collective buying power, advertising, economies of scale, etc. Has become an increasingly popular retail business: The initial capital investment required by the franchisee. Offers franchisee a turnkey approach to running a business (benefit from pre-determined approach and brand name and supposed success) Turnkey: an already constructed project so that it could be sold to any buyer as a completed product. Franchising: a marketing technique whereby franchisor supplies product or service to franchisee who in turn makes it available to the public. Distribution: a manufacturer supplies goods to a distributor who then sell such goods. The arrange may impose obligations on both the manufacturer and the distributor ***(distributors are not franchisors)*** Product distribution/producer and trade name franchising, which is basically hands off (75% total) Business format franchising - total turnkey package for franchisee - more recent innovation. Rapid growth for franchisor with relatively low capital.
