What is a franchise?

1
Discussion
What is a franchise?
grants a licence to
trades under name of franchisor
2
Discussion
What types of businesses tend to be franchises?
Can you think of any others? What popular
franchises do you have in your country?
3
Setting up a franchise
Put these stages of researching a franchise into
the correct order.
b) Decide how much money you can afford to invest
and how much you need to borrow.
a) Shortlist two or three franchises and talk to
some of the franchisees running these businesses.
d) Identify the type of business you would like
to operate in.
b) Decide how much money you can afford to invest
and how much you need to borrow.
e) Contact the franchisees operating in that
business and ask them to send you information.
c) When you have all the information you need,
complete the application form of the most
suitable franchise.
a) Shortlist two or three franchises and talk to
some of the franchisees running these businesses.
d) Identify the type of business you would like
to operate in.
f) Do some market research.
e) Contact the franchisees operating in that
business and ask them to send you information.
c) When you have all the information you need,
complete the application form of the most
suitable franchise.
f) Do some market research.
4
Setting up a franchise
Maria mentioned these figures when talking about
her franchise. Can you remember what they refer
to?
5
Verb collocations
a profit
a phone call
homework
business
market research
a decision
somebody a favour
a break
a chance
an arrangement
a risk
overtime
a recommendation
an excuse
an exam
serious work
take
make
do
6
Discussion
1 What was the last big decision that you
_______?
made
take
2 How often do you need to _____ a break from
work?
took
3 When was the last time you _____ a risk?
do
4 What kinds of companies would you like to _____
business with?
done
5 Have you _____ anyone a favour this week?
7
since ?
or
for
2008
a long time
yesterdays meeting
2008
Tuesday
last night
nearly a year
last night
a long time
we moved offices
9 oclock
five hours
ages
two weeks
my birthday
two weeks
Tuesday
ages
we moved offices
nearly a year
9 oclock
five hours
yesterdays meeting
my birthday
8
Asking questions
Question
Answer
1
How long has Max lived in Hong Kong?
Max has lived in Hong Kong since 2000.
2
How long has she been in charge?
Shes been in charge for six months.
How long have they owned stores in the US?
Theyve owned stores in the US for three years.
3
Ive known about the takeover for a few days now.
How long have you known about the takeover?
4
5
How long has he been ill?
Hes been ill since last Thursday.
6
Weve had this problem since the new machinery
was installed.
How long have you had this problem?
9
Discussion

• Travelling by air what do you need to do?

check in desk
duty free shop
passport control
security check
departure lounge
10
Discussion

• Travelling by air what do you need to do?

11
Handling questions
12
Max has lived in Hong Kong since 2000.
Shes been in charge for six months.
Notes
Positive points
Negative points
Cheap land No problems to expand
Flat area, near large river, flooding? High
humidity, parts would be kept inside
Location
Good rail connections to Mumbai No plans for
highway
Road connections poor, especially in monsoon.
Highway wont be finished for years
Infrastructure (roads, railways)
Need to invest in some retraining programmes
Plenty of skilled workers as small factories in
area already
Staff
None of local suppliers have necessary control
units. Will need to fly in from UK at start
Lots of suppliers in area
Suppliers
Constructing the factory
Only six months
With paperwork could take up to a year
13
Are you a risk taker?
1 Where would you put yourself on this scale?
Give reasons.
2 Give some real life examples when you have
taken or avoided taking risks.
3 Would you like to set up and run your own
business? Why? Why not?
14
Classic Cotton Clothes
Finnleys
Name of franchise
Toasties
2000
1999
1989
Established
Home care
Business area
Convenience food
Organic clothing
7,500
20,000
Franchise fee
18,000
Cost of fittings etc.
30,000-40,000
?
60,000
No. of franchises
530
300
Almost 100
Young professionals, office workers, students
People in late twenties or thirties
Disabled and/or older people
Typical customers
?
Growth potential
High
High