How does the concept of franchising work and why do so many companies do it?

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I was watching undercover boss and in the episode the CEO was unhappy with the work performance of an employee but couldn’t fire her. Isn’t the CEO the boss and above the manager of the store?

In: Economics

3 Answers

Anonymous 0 Comments

* Instead of being a general distributor that sells things like frozen hamburgers to whoever, they allow others to open stores with their name and then sell all that stuff directly to them.
* This allows them to:
* Set the prices
* Make the rules about how much stuff each restaurant has to buy every month/quarter.
* Avoid having to pay for things like healthcare and retirement accounts for thousands of employees since they don’t technically employ the people working in the restaurant.

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