ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Either A or B
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None of the above
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Detailed explanation-1: -In general, franchises have a lower failure rate than solo businesses. When a franchisee buys into a franchise, they’re joining a successful brand, as well as a network that will offer them support and advice, making it less likely they’ll go out of business.
Detailed explanation-2: -Answer and Explanation: The answer is true. Franchising is a form of business organization in which a firm that already has a successful product or service licenses its trademark and method of doing business to other businesses in exchange for an initial franchise fee and an ongoing royalty.
Detailed explanation-3: -“Owning a franchise allows you to go into business for yourself, but not by yourself.” A franchise provides franchisees (an individual owner/operator) with a certain level of independence where they can operate their business.
Detailed explanation-4: -You can become your own boss. Get training, support, and brand recognition. Benefit from the franchisor’s expertise. Franchising is usually easier to finance than an independent start-up. Franchise owners get discounts on supplies because of their buying power. 20-Feb-2023