What Is Franchising? What Is the Relationship Between a Franchisor

question 13

Essay

What is franchising? What is the relationship between a franchisor and franchisee? Describe at least one advantage and one disadvantage of franchising for the franchisor, and at least one advantage and disadvantage for the franchisee.

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Definitions:

Services Provided

The performance of work, assistance, or activities for the benefit of another individual or organization.

Expense Accounts

These accounts record the consumption of assets or services that occur during the operation of a business, leading to a decrease in owner's equity.

Revenue Accounts

Accounts in the general ledger that track the income generated by a company from its normal business operations.

Gain On Sale

The profit realized when a capital asset is sold for a higher price than its purchase price.