APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

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Where a business gives another business the right to produce its product together with its name, logos / brands in exchange for an initial fee and annual royalty payment (usually a percentage of the sales turnover or profit). Examples include: Benetton, McDonalds, Burger King, Pizza Hut, KFC, Wimpy, The Body Shop. This is a relatively quick way of gaining access to foreign markets without spending huge amounts of money as the franchisee has to provide the capital to start the business. The franchisee also has a direct financial incentive to be far more motivated than salaried managers, and thus may work harder to make it a success.

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