Some of Dove Bank's customers operate franchises as franchisees for franchise companies.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.

1. [2] Any difference × 2 marks. There should be comment on both for the full marks.
2. the franchise company is a well-known large business
3. the franchisee is an individual who takes up a franchise opportunity
4. the franchise company offers the opportunity to sell a product or service in a particular area
5. the franchisee accepts a franchise, from the franchise company, for which royalty payments are made
6. Any other relevant difference.
7. [4] Any four points × 1 mark each, or 2 well explained × 2 –
8. they can access their accounts anytime and anywhere/at home
9. they can manage their finances online
10. they can make payments to creditors
11. they can view balances
12. they can obtain bank statements electronically
13. they can transfer money between accounts
14. they can arrange standing orders/direct debits
15. they can request borrowing facilities
16. they may have no time to go to the bank
17. request cheque books
18. change PIN number
19. Any other relevant point.
20. [4] Any four points × 1 mark each or two well explained points × 2 marks
21. provides a detailed record (1) of all transactions on the account (1)
22. gives details of all methods of payment (1) used e.g. direct debits, cheques (1)
23. shows any charges made (1)
24. shows any interest added (1)
25. shows a running balance after each transaction and the balance when the statement was issued (1) so that he does not become overdrawn (1)
26. enables the account holder to check their financial position/how much they owe (1)
27. enables the account holder to carry out a reconciliation to see if errors have been made (1)
28. Any other relevant point.
29. [3] Any three points × 1 mark each – 1 good explanation given 2 marks.
30. because she is dealing with many customers
31. because she needs to keep accurate records of her dealings with these clients/to allow customers to check for mistakes
32. because the invoices given details of the work undertaken and the amount owed by the customer
33. they act as a request for payment
34. they act as a proof of sale
35. legal obligation for accounts/taxes
36. Any other relevant point.
37. [1] Any one document × 1 mark such as statement of account, receipt, order form, delivery note, credit note, letter or enquiry.
38. [6] Level 2 (4-6 marks) Has discussed whether or not Pia should take a franchise with Dainty Dusters or continue managing her existing business and has given a reasoned opinion. (If a candidate has discussed only the franchise or the existing business award 4 marks max).
39. If Pia decides to take the franchise, she will be joining an already established business and many kinds of assistance will be provided. She will be part of a well-known brand with plenty of support and national advertising.
40. She will, however, have to follow the rules of the parent company and invest a sum of money in order to obtain the franchise. She will have to make royalty payments to the company from the income she makes. She is likely to be restricted as regards the area in which she operates.
41. Pia is already running her business as a sole trader. She is her own boss and can make her own decisions about her business. She takes any profits for herself and is not restricted by rules and regulations. She may, however, be considering expansion and it may be difficult, as a sole trader, to raise finance for this. She may be concerned about unlimited liability – being responsible for her own debts and want the financial protection of a large organisation.
42. As Pia is already running a successful business she should probably remain as a sole trader so that she can develop her entrepreneurial skills. If she thinks that her existing business cannot develop any further she should consider the assistance from a national brand that a franchise would bring.
43. Level 1 (1-3 marks) Has commented on whether or not Pia should take a franchise or has commented on Pia remaining as a sole trader, with or without a decision.