Session (1.4.3) Franchises and Joint Ventures

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Objectives

By the end of this session, you should be able to:

explain the advantages and disadvantages of franchises;
define franchise, franchisee and franchisor;
explain the advantages and disadvantages of joint ventures.

Engage

There are always risks involved in business. One method of reducing risk for a new business is to buy a franchise.

Watch this video on how franchising works, with examples from McDonalds.

WATCH – Franchises (YouTube)

Complete the activity.

Learn

One way to reduce risk for large established businesses is to form joint ventures. A joint venture is where two or more businesses come together to collaborate on a specific project.

READ AND MAKE NOTES – Summary File 1.4.3

Read pages 64 to 66 of your coursebook and make notes on franchises and joint ventures, using our summary file to enhance your notes.

Figure 4.10 on page 65 is a great summary of the advantages and disadvantages of franchising.

Apply

Complete Activity 4.4 on pages 65 and 66 of your coursebook.

Complete Case Study 4.3 on pages 66 and 67 of your coursebook.

Consolidate

Add the key words franchise, franchisor, franchisee and joint ventures to your glossary.

Complete the first two parts of row four and all of rows five and six in the check your progress box on page 70 of your coursebook.