【正确答案】
C
【答案解析】[解析] 1-10
Transcript
Speaker: Now I'll assume you all know what a franchise is.
Yes? So let's have a look at the roles of the franchisor and the franchisee. In most cases the franchisor usually supplies seven things.
Firstly, an established product or service and a well-known brand image. And then he'll supply an operating inanuaI, showing how the business should be set up and run. He'll also supply help, advice and training in setting up the business. He'll normally give continuing advice and training during the life of the franchise. And then he'll normally supply all the equipment that's required to set up the business. Then he'll continue to supply a stock of the product, which he'll be able to obtain cheaply in bulk. This may result in savings, or depending on the franchisor's mark- up, commit the franchisee to buying at above market price.
And lastly, he'll be responsible for local, national and even international advertising.
Questioner: Sorry to interrupt, but l think it's important to emphasize that the on-going support you mention may vary a lot from franchise to franchise. The brand image of the product and the level of help you get at start-up are visible.
But what is likely to happen after, say, twelve months of operating the franchise is much harder to foresee. For example, if things go wrong and your profits are low, you need to know what kind of help you're likely to get - do the franchisor's advisers or trouble-shooters visit regularly? Do they have a mobile back-up team to take over in an emergency? I think it's important to be clear about things like that. Are there any other things like that you need be beware of?
Speaker: Oh, yes. Yes, I agree with you about the importance of this. Yes, there are many other aspects of continuing support.
You need to know if there will continue to be refresher courses to retrain staff - and if there are, will these courses be good and how much will they cost? You'll also want to know if the franchisor is devoting part of his profits to on-going research and development of the product. And you also want to be sure that, if he's charging you a levy for advertising, that this money's actually being spent on advertising. That kind of thing. But let's discuss this later on.
Questioner: Thank you. Yes.
Speaker: Now, if we look briefly at the other side of the operation: what the franchisee brings to the business. The first thing he brings - 1'II call the person he, though of course it may well be a she! The first thing he brings is capital: he has to pay a capital sum to buy the franchise for a particular territory: for a big hamburger franchise this could be as much as half a million pounds. Of this, normally, 30% would be the franchisee's own capital, and 70~/,, from a bank. Banks look very favourably on franchises.
He also has to pay a monthly fee to the franchisor, this is usually based on percentage of sales - not profits. There may also be an advertising levy.
He also has various commitments under the terms of his contract, some of which have a good side and a bad side. For instance, he's committed to following the franchisor's methods. Also he can't sell the franchise without the franchisor's agreement. You also know that he's obliged to show the franchisor all his documents and sales figures and he is also committed . . .