Discussion What is a franchise?

Business format franchising

franchisor

grants a licence to franchisee

franchise

trades under name of franchisor

Discussion
What types of businesses tend to be franchises?

Fast food outlets?

clothes stores? hairdressers?

Can you think of any others? What popular franchises do you have in your country?

Setting up a franchise Put these stages of researching a franchise into the correct order. b) Decide how muchthree franchises and talk to some of the franchisees a) Shortlist two or money you can afford to invest and how much you need to borrow. businesses. running these d)b) Decidethe type of business you would like to operate in. Identify 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 c) When you have all the information you need, complete the application you information. form of the most suitable franchise. a) Shortlist two or three franchises and talk to some of the franchisees d) Identify the type of business you would like to operate in. running these businesses. f) e) Contactmarket research.operating in that business and ask them to Do some the franchisees send you information. c)f) Do some have all research. When you market the information you need, complete the application form of the most suitable franchise.

Setting up a franchise Maria mentioned these figures when talking about her franchise. Can you remember what they refer to?

five or six times

for three years three months

five years ago

50,000

12,000

50%

2,500

Verb collocations a profit a phone call homework a break business market research a risk a decision somebody a favour a chance an arrangement

overtime

a recommendation
make

an excuse
do

an exam

serious work
take

Discussion made 1 What was the last big decision that you _______? 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?

for
a long time
two weeks

or
yesterdays 2008 last offices Tuesday year atwoages wenearly weeks movedatime five hours 9 oclock mylongnight birthday meeting

since ?
2008 last night Tuesday

ages
nearly a year

we moved offices
9 oclock yesterdays meeting my birthday

five hours

Asking questions Question 1 How long has Max lived in Hong Kong? Answer
Max has lived in Hong Kong since 2000.
Shes been in charge for six months. Theyve owned stores in the US for three years. Ive known about the takeover for a few days now. Hes been ill since last Thursday.

2 How long has she been in charge?

3 4 5 6
How long have they owned stores in the US? How long have you known about the takeover? How long has he been ill? How long have you had this problem?

Weve had this problem since the new machinery was installed.

Discussion Travelling by air what do you need to do?

duty free shop

passport control

check in desk

departure lounge

security check

Discussion Travelling by air what do you need to do?

check in desk

security check

duty free shop

passport control

departure lounge

Handling questions No, on the contrary Thats a very good question As I mentioned in my talk

Im afraid I cant go into the details here

OK, Im glad you asked me that

Some people say that, but it isnt

A Prepare to talk for two minutes about your plans for the future. Where do you see yourself in five years time? B Prepare a list of questions to ask your partner.

Positive points
Location
Infrastructure (roads, railways) Staff Suppliers
Cheap land No problems to expand Good rail connections to Mumbai No plans for highway Plenty of skilled workers as small factories in area already Lots of suppliers in area

Notes:

Negative points
Flat area, near large river, flooding? High humidity, parts would be kept inside Road connections poor, especially in monsoon. Highway wont be finished for years Need to invest in some retraining programmes None of local suppliers have necessary control units. Will need to fly in from UK at start

Constructing the factory

Only six months

With paperwork could take up to a year

Are you a risk taker? 1 Where would you put yourself on this scale? Give reasons.

1 hates risk

5 loves risk

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?

Name of franchise Established Business area Franchise fee Cost of fittings etc. No. of franchises Typical customers

Finnleys
2000 Home care 20,000 ? 300+ Disabled and/or older people High

Toasties
1999
Convenience food 7,500 60,000 530 Young professionals, office workers, students ?

Classic Cotton Clothes

1989
Organic clothing 18,000 30,000-40,000 Almost 100

People in late twenties or thirties

High

Growth potential