In pairs, prepare a short checklist of the questions that you would need to ask yourself before starting a business.
Example: How much money will I need? _____________ Text B Learn the active vocabulary of the Unit and get ready to use it in your further work.
For many people in recent years an excellent alternative way of starting a business has been via a franchise – and many franchised businesses have flourished. You contract to run an outlet on behalf of the named organisation concerned. Certain things are prescribed for you but you still have considerable independence. You will be rewarded according to your success and you have the benefit of a national organisation supporting you with training, advertising, and so on. Franchising is a business system in which a company (or franchisor) sells an individual (or franchisee) the right to operate a business using franchisor’s established system or format. As part of the franchise agreement the franchisee pays an initial sum of money, a franchise fee or front end fee, to the franchisor and agrees to pay a royalty or management service fee for continuing advice and assistance, which is usually calculated as a percentage of annual turnover. The franchisee may also pay an advertising fee to contribute to the franchisor’s annual advertising and marketing costs. The franchisee also has to find the necessary capital to open the business. Exercise 1. In pairs, decide if the points below refer to (a) franchisees or (b) franchisors.
Text A
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