Payment'. Many high street name are Franchises: Benetton, Mc Donalds and Pizza Hut.
A franchisee benefits from having an already well-established brand name, and bank's are more likely to lend money to franchisee's because of this. This position is much more reliable than being a sole trader.
A franchisee has very limited independence and is ruled by the franchisor. The business cannot be sold, and regular 'Royalty Payments' have to be made.
I came to the conclusion that I would not like to become a franchisee. I decided this, as I had wanted to start up my own business with my own rules. I would have not been able to survive successfully as a franchisee.
These are the biggest companies in the business world, and they produce items for sale or services to more than one country. A multinational that makes and sells a number of different products is called conglomerate.
Multinationals normally have their headquarters in one country. Multinationals must have strategies to cope with a number of different problems, as becoming so large is complicated. Good communication is necessary.
The first advantage in becoming multi-national is competition. Size can lead to lower costs of production, or may able the company to shift labour to a lower cost country. This is called economies of scale. In some industries a manufacturer can gain higher priority by having research, design facilities and development all over the world. Businesses profit from this by knowing how to cater for the local market better.
A business with many diversifications may lose direction. Individual sectors of the company may compete against each other. A multinational must always have clear objectives to prevent this. Multinationals may have a hard time dealing with all the laws of each company...