Unit 11. Franchising.

Pre-reading tasks:

What world famous brands are in these pictures?

Which sentences are about McDonalds and which are about Holiday Inn?

1. It is one of the biggest business systems in the world, dealing with public catering.

2. This franchising company serves people with inexpensive rest and family accommodation for travellers.

3. The first chain of these enterprises was founded in 1952 in Memphis, Tennessee.

4. The first enterprise of this type was opened in 1955 in Des Plaines, Illinois.

5. It was the idea of Ray Kroc who suggested uniting his business of selling Multimixers with restaurant business.

6. In 1965 a hundred shares costing $2,250 that day have multiplied into 3,199,900 shares today worth over $14,165,557 on December 31, 2006.

7. Since 1979 the Happy Meal has been making kids visits much more special.

8. If in1959 there were only 100 of those enterprises, by the beginning of 21^st century their number grew to over 2000.

9. You can enjoy the rest in it even in Niagara Falls, Ontario.

Vocabulary.

• Read the definitions of the following economic concepts, try to remember them and be ready to use.

Franchise – Business arrangement whereby an individual obtain rights from a larger company to sell a well-known product or service.

Franchisee – person or group to whom a corporation grants an exclusive right to the use of its name on a certain territory, usually in exchange for an initial fee plus monthly royalty payments.

Franchisor – Corporation that grants a franchise to an individual or group.

Viable business – business which is worth doing; business which is able to live and grow.

Royalty, royalties – payments to the owners of natural resources, trade marks, who allow their use; payments made to an author or composer for each copy of his work sold.

• Match English and Ukrainian equivalents.

1. proliferation	торгова точка, що повністю належить власнику
2. dealership	недолік; вада
3. funeral parlour	сталість, постійність, послідовність
4. by and large	законний, легальний
5. consistency	той, що продовжується; постійний
6. to deplete	життєздатний, вартий, здійснення
7. wholly-owned outlet	розповсюдження, швидке збільшення, зростання
8. viable	дошкільник
9. firm financial footing	фактично, по суті, по правді, справді
10. royalty	похоронне бюро
11. proven	дилерство
12. preschooler	обережний, підозрілий, насторожений
13. ongoing	авторський гонорар
14. drawback	призначена ціна
15. virtually	виправданий, доказаний
16. charging price	виснажувати, вичерпувати, зменшувати
17. wary	міцна фінансова платформа
18. legitimate	загалом, взагалі
19. fraudulent	час від часу; зрідка
20. occasionally	обманний, шахрайський
WARMING UP.

Think and say your opinion:

Do you think franchise business succeed in our country? Why? Prove by examples.

Can mentality influence business? In what way?

Can we say that franchise by and large is a business system where teams work?

Read the text and be ready to render it.

Text I.