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ID number:917252
Evaluation:
Published: 05.11.2018.
Language: English
Level: Secondary school
Literature: 13 units
References: Not used
Time period viewed: 2015.g. - 2018.g.
Extract

One more business organization is franchise. To buy a franchise can be a big risk but it is lower risk to fail because a franchise is based on a proven idea. “A business franchise involves the franchisor (the owner of the business)” who gives you a support usually including training and help to set up. A franchisee is to who sell a business format. “The franchisee has a license to trade under the franchisor's name and also to use the logos, trademarks, etc. the license that the franchisee buys is usually restricted to a specific geographical area and for a limited period of time.” (moodle.boston, n.d.) It doesn’t matter that you bought a franchise you have to pay income tax. If income exceed £81,000 that you have to “have to register for VAT and start to collect this tax from your customers.” (Howell, 02.02.2017) Can be some disadvantages of franchising for example cost for a franchise can be higher that expect and “all profits (a percentage of sales) are usually shared with the franchisor.” (nibusinessinfo.co.uk, n.d.) Even to be a franchisee or a franchisor it can be a hard work job. …

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