Read the following statements and decide which refer to franchisers (FR) and which to franchisees (FE).

a) FE b) They do not have to borrow large amounts of capital to expand. FR c) They must respect certain rules. FE d) They have to buy supplies from one source. FE e) They are responsible for national advertising. FR They can easily get advice on how to deal with specific problems. f) They can only sell certain products. FE g) They may not be able to sell the business easily. FE h) They provide regular reports on the level of sales. FE i) They can develop their business without having to deal with problems of recruiting and managing personnel. FR

Complete the following table.

Verb Noun (activity) Franchise /franchising ayment LICENCE Person offers who Person who receives Franchisee PAYEE LICENSEE LESSEE CONSIGNEE #ssignee

Franchise PAY !icense LEASE CONSIGN ASSIGN $nterview

Franchis(o)er PAYER LICENSOR

LEASE/LEASING !essor "onsignment ASSIGNMENT INTERVIEW CONSIGN(O)ER ASSIGN(O)ER

INTERVIEWER INTERVIEWEE

Parties to an agreement
1. Everyone promises to obey the treaty all major countries are _______________ to it. SIGNAT !IES ". In the civil case# the _______________ brou$ht the action a$ainst the _______________ for %ama$in$ his car on purpose. &'AINTI(()*E(EN*ANT +. The price ,as ne$otiate% bet,een the _______________ an% the _______________ of the house# in a private sale. -./E!)SE''E! 0. The ban1 a$ree% that the _______________ shoul% pay 1"2 on the loan# so the _______________ ma%e a fair profit3 - !! 4E!)'EN*E! 5. 6anufacturers sell their $oo%s to _______________# an% in turn# _______________ buy from them. 47 'ESA'E!S)!ETAI'E!S

8. The relationship bet,een a _______________ an% _______________ is boun% by confi%entiality. 'A4/E!)9'IENT :. The beer can be pro%uce% un%er licence but the _______________ must fulfil all the re;uirements impose% by the _______________. 'I9ENSEE)'I9ENS ! <. Some clothes companies sell their pro%ucts on a franchise basis= each country has a main _______________ ,ith numerous people ,or1in$ as _______________. (!AN97ISE!)(!AN97ISEES >. A letter ,as sent to the mana$er complainin$ about ,or1in$ con%itions. All the members ,rote their names. The letter rea%= ?4e# the _______________# stron$ly protest about con%itions at ,or1.@ .N*E!SIGNE* 1A. 6any projects re;uire the cooperation of various partners. If they all a$ree to ,or1 to$ether# they become _______________. &A!TIES T T7E AG!EE6ENT

Create noun compounds for the following.

1. A franchise system for retailers ,hich is sponsore% by service firms. A serviceBfirm sponsore% retailer franchise system. ". A %istribution net,or1 for ,holesalers ,hich is fun%e% by manufacturers. A manufacturerBfun%e% ,holesaler %istribution net,or1. +. A coBoperative for customers ,hich is run by retailers. A retailerBrun customer coBoperative.

0. A mar1et survey of competitors ,hich is finance% by in%ustry. An in%ustryBfinance% competitor mar1et survey. 5. An association of employers ,hich is supporte% by the $overnment. A $overnmentBsupporte% employer association.

A franchise organisation is a contractual association betwe en _______ a franchiser (a manufacturer, wholesaler, or to service organisation) and in franchisees (independent business people who bu the right _____ own on and on operate one or more units ________ the on franchise s stem). Franchise organisations are normall based

Fill in the blanks with a suitable preposition.

"he franchiser#s compensation can consist of ________ the o following elements$ an initial fee% a ro n alt fo _________ r by gross sales% rental and lease fees _________ o e!uipment f In and fi&tures supplied ________ the franchiser% a share t o a regular ________ the profits% and sometimes f licenseo fee. ________ a few cases franchisers have also charged management consulting fees, but usuall the franchisee is

& N/ .& 9 .G7 .& 97I& IN CE! .T

%eFtrava$antly spen% a lot of money on smth usu luFurious %to contribute money to a communal fun% %to $ain financial a%vanta$e from a situation %to spen% or pay bac1 money usu reluctantly %to pay for smth %to cut off fun%in$# to remove %to ac;uire a lot of money %to settle a bill or %ebt

SD.A!E .& !A9E .& S&'AS7 .T N 9AS7 IN N

1. 'oo1 at the price of these shoes. I can@t affor% to spen% money on unnecessary luFuries. S&'AS7 .T N ". 4hen Tom left his job all his collea$ues contribute% to buy him a $oin$Ba,ay present. 97I&&E* IN +. 7e ma%e money from the %eath of his film star ,ife by sellin$ his story to the ne,spapers. 9AS7E* IN N 0. /ou never pay for anythin$. /ou@re so ti$ht an% stin$y. 9ome on# spen% some cash. 9 .G7 .&

5. 7o, ,ill members of the public feel about havin$ to pay for thisG & N/ .& 8. *on@t ,orry about it no,. 4e can $et even later. SD.A!E .& :. 'ast year# they ma%e profits of more than H+ million. !A9EE* .& <. 7o, can I eliminate my %ebts fast before the year en%sG CE! .T

9AN T7INE IS IS ESTA-'IS7E* GETS A!E !.N ((E! IS ((E!E* A!E ATTA97E* - .N* EIISTS *E&EN*S !E6AINS 9EASES

4 !ES 6.ST -E 9 NNE9TE* A!E EI&E9TE* 4I'' -E 'E(T IS !.N)S7 .'* -E !.N A!E 6AINTAINE* IS TAEEN 9A!E ( !E6AINS

Franchising (BE)IS '''' not a new phenomenon. HAS BEEN (t (BE) ''''' around since the nineteenth centur , when such companies as )inger and (nternational *arvester ESTABLISHE (D ESTABLISH) '''''''dealerships throughout the world.

+arl in this centur , Coca Cola, ,eneral -otors, USED among others, (USE) ''''' franchises to distribute or sell BEGA their products. .ut the N real boom in franchising (BEGIN) ''''in the late /012s, with the proliferation of hotels like *olida (nn and fast3food

HAS BEEN "he latest trend in franchising (BE ) ''''' diversification in the variet of products ARE and OFFERING services RANGING offered. "oda , over 6,222 companies (OFFER)'''' franchises, ( RANGE ) ARE '''' from da 3care centres to video3tape rental outlets, and funeral parlours. . and large,

PRACTICED 1. As practicin$ in retailin$# by usin$ the business JJJJJJ OFFERS net,or1 concept# franchisin$ offer franchisees JJJJJJJ 7 the a%vanta$e of startin$ up a ne, business JJJJJJJJ. 7 ;uic1ly base% on a proven tra%emar1 an% JJJJJJJJJ. DOING formula of ma1in$ business# as oppose% to JJJJJJJJ.. HAVING have to buil% a ne, business an% bran% from scratchJJJJJJ

7 ". In a%%ition# a comprehensive stu%y complete% JJ 7 in "AA8 by (ranchise -usiness !evie, clearly JJJJJJ *E6 NST!ATES %emonstrate that the majority of franchisees are JJJJJ satisfie% ,ith its %ecision to invest in a proven JJJJJ T7EI! system. 7 +. <82 positively rate% their franchise JJJJJJ opportunity an% :12 say they ,oul% K%o it a$ainL. JJJ SAI*