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The business I have chosen "Pizza Hut Ltd" falls under the classification of a Franchise.
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The business I have chosen "Pizza Hut Ltd" falls under the classification of a Franchise. A Franchise is when a company allows someone to sell its goods or services using its trademarks, brand name. A fee will be charged for this. The benefits for this type of owner ship are:- That the business has a very large, very secure baking of finance. Source of the finance for a franchise is similar to those of other independent operators - the franchisees own funds, bank loans and over drafts. Or in the case of a limited company, money is raised through the sales of shares. Banks look more favourably on a franchise operation when considering loans; they are much less of a risk. Pizza Hut is a very good brand name so if a new franchise of Pizza hut opens they are pretty much guaranteed of some business. All the resources they need, will be available...
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