Identify and Describe the Three Different Types of Franchises

question 10

Essay

Identify and describe the three different types of franchises.
A.Dealership - a form commonly found in the automobile industry.Here,manufacturers use franchises to distribute their product lines.These dealerships act as the retail stores for the manufacturer.In some instances,they are required to meet quotas established by the manufacturers,but as is the case for any franchise,they benefit from the advertising and management support provided by the franchisor.
B."Retail" - The most common type of franchise is the type that offers a name,image,and method of doing business,such as McDonald's,Subway,KFC,Midas,Dunkin'Donuts,and Holiday Inn.Note: students may identify as retail,no specific name is given for this type.
C.Service - These include personnel agencies,income tax preparation companies,and real estate agencies.These franchises have established names and reputations and methods of doing business.In some instances,such as real estate,the franchisee has actually been operating a business and then applies to become a member of the franchise.

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Definitions:

Disposal

Refers to the process of discarding, selling, or removing an asset from the company's records.

Property, Plant and Equipment

Long-term tangible assets held for business use and not expected to be converted into cash in the upcoming fiscal year.

Land Held

Real estate owned by a person or entity, typically recorded as an asset on the balance sheet.

Corporate Headquarters

The main office or central administration location of a company where key managerial functions are coordinated.