Economics- Franchises, Coops

• Economics
• Secondary Education

Answer in the chat box

Name a franchise that you can relate to.

Chapter 8.4

Franchises, Coops and Noon profits

Pages 248-251

Objectives

Identify the business organization

Compare franchises,co-ops, and nonprofits

Evaluate economic decision

Introduction

A franchise is a business made up of semi-independent businesses that all offer the same products or services. Each franchisee, as the individual businesses are known,

pays a fee to the parent company in return for the right to sell the company’s products or services in a particular area.

Franchises, co-ops, and nonprofits have distinctive features. ​​What Kind of Organization?

Review the following descriptions of business organizations. Decide what kind of business organization fits each description. Remember that there are three different types of

cooperatives.

• Several companies in your city join together to get a better deal on the health insurance they offer to their workers.

• Dan pays a fee for the right to sell Soft Freeze ice cream. Soft Freeze provides all the equipment Dan needs.

Rachel and Serafina join an association that offers relatively cheap organic products. In return, they pay a small monthly membership fee.

• The Portswood Road Church Club provides free food service for the poor of the neighborhood.​​

Challenge Imagine a cooperative you and your friends might form.Describe how it would operate and how it would save you money.​

Answer here

Answers

1. producer co-op

2. franchise

3. consumer co-op

4. nonprofit​​

What is a business made up of semi-independent businesses that all offer the
same products or services?

Who pays a fee to the parent company in return for the right to sell the company’s products or services in a particular area?

What are the chief distinctions among franchises, cooperatives, and nonprofits?

Explain how franchisees share the risk of the business venture with the franchiser.​

The structure of a nonprofit resembles that of a ______________.

A nonprofit must
receive a_____________ charter.

You’re shopping for a new camera. You could buy it from a specialty camera store that offers expert advice or from a discount retail store that carries hundreds of other products. Or you could join a camera club that offers a
buying cooperative. What are the advantages and disadvantages of each option?

Write about the franchise, co-ops, and nonprofits.