GCSE Business Studies Revision: Franchises (With Mock Questions!)
Hello, future business leaders! 👋
Feeling ready to tackle GCSE Business Studies? I know you’ve got this, and today we’re focusing on Franchises. This is an important topic, and I’ll help you break it down so it’s easier to remember when you're sitting in that exam room!
What is a Franchise? 🤔
A franchise is a type of business structure that allows one business (the franchisee) to operate under the branding and business model of an established company (the franchisor). The franchisee typically pays an initial fee and ongoing royalties to the franchisor. This setup can provide a great way to run a business with an established brand and support—but there are responsibilities too!
Key Learning Items 📚
You need to understand the following key aspects:
✅ Franchise Agreement - The legal document that outlines the relationship between franchisor and franchisee.
✅ Franchisee vs. Franchisor - Know the difference in roles and responsibilities.
✅ Advantages of a Franchise - For both the franchisee and the franchisor.
✅ Disadvantages of a Franchise - What are the risks or downsides for both parties?
✅ Support from Franchisor - Ongoing help, training, and resources provided.
What You Need to Show 📝
In your GCSE exam, you’ll need to:
✍️ Demonstrate a clear understanding of what a franchise is.
✍️ Explain the advantages and disadvantages for both franchisees and franchisors.
✍️ Be able to discuss the features of a franchise agreement.
✍️ Use real-world examples to back up your points (e.g., McDonald's, Subway, etc.).
Top Tips to Remember Before the Exam! ✨
🔑 Know Your Definitions - Be clear on the basic terms like ‘franchise’, ‘franchisee’, and ‘franchisor’.
🔑 Use Examples - Real-world examples make your answers stronger and show you understand the topic.
🔑 Weigh Up Advantages and Disadvantages - Don't just list them, explain why they are pros or cons.
🔑 Read the Questions Carefully - Make sure you answer what is asked—don’t go off track!
🔑 Practice Mock Questions - Like the ones below, these will help you get exam-ready! 💪
Mock Questions for You! 🎯
Q1 - Which of the following is a benefit of franchising for the franchisee?
a) Limited creative control
b) Established brand recognition
c) High start-up costs
d) Increased liability
Q2 - What does a franchise agreement typically include?
a) Training for the franchisee
b) A guarantee of profit
c) Freedom to change the business model
d) Complete ownership of the brand
Q3 - Which of the following is a common disadvantage for the franchisor?
a) Less control over individual franchises
b) Difficulty in marketing the brand
c) Increased competition
d) Low brand recognition
Q4 - How does a franchisee typically pay for the use of the franchisor’s brand and support?
a) Monthly rent payments
b) A loan from the franchisor
c) A one-time fee and ongoing royalties
d) Ownership of the brand
Q5 - Why might a franchise be a lower-risk option for starting a business?
a) No initial investment is required
b) Franchisees can change the brand as they like
c) The business operates under an established brand
d) No support is provided by the franchisor
See more questions in our full Q&A Business Studies Booklet
Good luck with your revision, and remember—you’ve got this! Stay confident, keep practicing, and don’t forget to take short breaks while studying. 💪📚 Keep smashing it! 🙌