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AN EXAMPLE OF FRANCHISE STORES
STARBUCKS CAFÉ
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Starbucks is a large multinational chain of coffee shops with corporate headquarters in Seattle, Washington. Its coffee shops in the U.S. are especially popular among students and young urban professionals. The company was in part named after Starbuck, a character in Moby Dick, and its insignia is a stylized cartoon siren.
In addition to coffee, Starbucks shops also serve other drinks, both hot and cold, and pastries. Many of their stores are inside other retail locations such as supermarkets and bookstores. As a general rule, Starbucks does not offer promotional prices on its products, which tend to be higher than those of competitors.
The first Starbucks was opened in Seattle in 1971 by three partners—English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three were inspired by Alfred Peet, who they knew personally, to open their first store in Pike Place Market to sell high-quality coffee beans and equipment. (This location is still open today, though it is not in the same exact location it was when it opened.) During their first year of operation, they purchased green coffee beans from Peet’s, then began buying directly from growers.
The original Starbucks store in Seattle
http://en.wikipedia.org/wiki/Starbucks
Franchise operations are usually small retail businesses (fast food restaurants, launderettes, skin and hair are stores, etc.). Worldwide franchises include Wimpy, Kentucky Fried Chicken, Benetton.
Franchise is a license to sell products and services under one established brand name. The company giving the licence is the franchisor, the individual paying for the licence is the franchisee.
The franchisee pays a percentage of the sales to the franchisor, in return he gets exclusive rights in an area, he is helped to build up stocks and equipment and also gets training in the running of business
GLOSSARY FOR THIS UNIT
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