WHAT OPTIONSEXIST FORSTARTING UP ABUSINESS?
LEARNING OBJECTIVESThe principles of franchising as it applies to small business start-upsThe advantages and disadvantag...
FRANCHISE – WHAT IS IT? A franchise is the right given by one business to other businesses to sell goods or services usin...
FRANCHISORThe business that gives the right for others to sell their products and/or service. E.g. McDonalds, SubwayWhat’...
FRANCHISEEPeople or persons that agree to manufacture, distribute or provide a branded produce, through a license from th...
Using your card sort, decide                             whether you card is a ad or             FRANCHISES       disadvan...
FRANCHISESAdvantages                    Disadvantages Brand already known          Less control as must do              ...
IDENTIFYING A SUITABLE START-UPLOCATION Which town / city? Which part of the city? What do you want to be close to? Is...
WHAT FRANCHISE WOULD BESUCCESSFUL HERE?
Habits and needs of                   the customers in the                           areaThe cost of the lease and        ...
HOW TO IDENTIFY A SUITABLESTART UP LOCATION Divide a full page into 4 equal sections Using p35-36 Explain the 4 steps y...
FRANCHISES The UK Franchise Homework Naked Pizza
7   what options exist for starting up a business
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7 what options exist for starting up a business

  1. 1. WHAT OPTIONSEXIST FORSTARTING UP ABUSINESS?
  2. 2. LEARNING OBJECTIVESThe principles of franchising as it applies to small business start-upsThe advantages and disadvantages of using a franchise as a means of starting a new business; assess franchising against other business start-up optionsHow to identify a suitable start-up location
  3. 3. FRANCHISE – WHAT IS IT? A franchise is the right given by one business to other businesses to sell goods or services using its name. People who buy into the franchise remain as independent businesses. Examples include:
  4. 4. FRANCHISORThe business that gives the right for others to sell their products and/or service. E.g. McDonalds, SubwayWhat’s in it for the franchise owner? Enables a firm to expand its sales quickly They receive a share of the sales Burger King receives 5% of all sales. You can work on developing more successful products
  5. 5. FRANCHISEEPeople or persons that agree to manufacture, distribute or provide a branded produce, through a license from the franchisor.Why do it? What do you get? Access to goods An established brand name and services Equipment Advertising and promotion Training Ongoing support
  6. 6. Using your card sort, decide whether you card is a ad or FRANCHISES disadvantage and create a table to show itAdvantages Disadvantages
  7. 7. FRANCHISESAdvantages Disadvantages Brand already known  Less control as must do what the franchisor Customers already buying wants product  Must pay royalties to Less risk during start-up franchisor Training & support  Cannot introduce new provided products without Keep most of the profits agreement from franchisor
  8. 8. IDENTIFYING A SUITABLE START-UPLOCATION Which town / city? Which part of the city? What do you want to be close to? Is it the right match between shop size and cost? Is this the right place for your business?  Who used this area? Who would be your customers?  Socio-economic / approximate social grade http://www.censusprofiler.org/
  9. 9. WHAT FRANCHISE WOULD BESUCCESSFUL HERE?
  10. 10. Habits and needs of the customers in the areaThe cost of the lease and Practical requirements fitting the property such as floor space
  11. 11. HOW TO IDENTIFY A SUITABLESTART UP LOCATION Divide a full page into 4 equal sections Using p35-36 Explain the 4 steps you go through to decide upon an adequate location for your franchise
  12. 12. FRANCHISES The UK Franchise Homework Naked Pizza

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