Explain the advantages of being a franchisee

Tips: When a keyword is mentioned in the question, it is advised to start your answer by defining that keyword or concept (you would usually get a few marks for this) . In this case, start your answer by defining a franchisee and the concept of franchising. This will form a strong introduction for your answer. Example answer: Franchising arises when a franchisor grants a license to another franchisee to allow it to trade using the brand and business structure. Franchisee’s usually will have to pay a proportion of its profits to the franchisor on a regular basis. However, the franchisee should gain some support from the franchisor such as training, marketing campaigns and may supply raw materials and equipment. One advantage of being a franchisee is that you don’t need business experiences to run franchise as training you need to operate the business model is usually provided which means that they do not have to establish themselves in the same as a sole trader might have to. Furthermore, as franchises often have an established reputation in the market, the methods and training is proven to be successful. Due to the established reputation, it is easier to build a customer base which will drive immediate sales. The franchisee is usually given an exclusive geographical area in which to operate the franchise thus limiting the competition.