ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

DEFINITION OF ENTREPRENEURSHIP

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is NOT a DISADVANTAGE of Franchising?
A
National branding will be established
B
Franchise may not be suited to area
C
Not your own creation
D
Need for regular disclosure of information
Explanation: 

Detailed explanation-1: -Answer: b Individual performance can lift the reputation, but not negatively affect franchise business.

Detailed explanation-2: -Disadvantages to franchisees include high costs and royalty payments, strict product rules, lack of support from uninterested franchisors, lack of flexibility in where to locate and how to trade, and other start-up challenges. Entering into an agreement with an interested franchisor is important.

Detailed explanation-3: -Another disadvantage of franchising is a lack of privacy. The franchise agreement will likely stipulate that the franchisor can oversee the entire financial ecosystem of the franchise.

There is 1 question to complete.