Topic summary

Franchisees

Franchisees

Extracted from the Wikipedia article Franchising.

Operations

Franchisees determine their capital investments after identifying and securing their preferred route, estimating potential patronage and revenue, balancing upfront infrastructure and ongoing operational costs against projected cash flow. Tickets to ride the ski lifts by the traveling public are bought only from DSS and the money raised is distributed to franchisees, in direct proportion to the number of passengers who travels on their lines. Franchisees’ financial viability depends on having relevant origin/destination characteristics to attract sufficient passenger volumes to use their lines, and by utilising infrastructure that is sufficiently economical to staff and operate.