Question

state any five features of franchise??​

Answer 1

Answer:

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Answer 2

Hey mate

Here's your answer

Features of Franchise

The characteristics or features of a franchise are mentioned as follows:-

1. Well established business

A franchise is a readymade and well established business that needs expansion. It is a ready form of business seeking expansion in new market areas with the help of a local representative.

2. Needs limited investment

As franchise business is already set up by the franchisor, the initial investment required by the franchisee to enter and establish is relatively low.

3. Easy entry in new markets

As the goodwill and reputation is already set up in other countries, franchisor does not require more efforts to enter in new markets. He is easily accepted in the new markets.

4. Business has large establishments

Franchise has large establishments around the world and operates through a network of local representatives in different market areas.

5. Helps in diverting business risks

By establishing outlets in different parts of the world franchise helps the owner of the firm to diversify his business risks.

6. Results in a large turnover

Franchise results in large volume of sales. Society is benefited by the management of franchisor and service skills of franchisee. Brand name and bumper publicity results in a large turnover.

7. Separates labour and specialisation

Franchise results in division of labour and specialisation. The franchisor concentrates on production, whereas franchisee looks after distribution and service at a unit level. The advantages of division of labour and specialization benefits both.

8. Allows use of brand name and trademark

In franchise selling the franchisor allows the franchisee to use his brand name, trademark, service mark and management skills for developing and expanding franchise business.

Hope it's helpful for you ^-^

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