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A major advantage of a franchise is that Question 3 options: the parent company has strict operating standards. the franchisee can launch new product lines. the parent company provides guidance on running the business. the franchisee can choose their own suppliers.

User YScharf
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2 Answers

1 vote

Answer:

the parent company provides guidance on running the business.

Step-by-step explanation:

i took the test lol!

User Syazdani
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5 votes

Answer:

the parent company provides guidance on running the business.

Step-by-step explanation:

Let's look at the answers proposed as a major advantage of a franchise:

the parent company has strict operating standards.

True. But for most people this is not advantage since that limits a lot their possibilities to step out of the line.

the franchisee can launch new product lines.

Normally, no. The franchisee is limited to the products agreed on by the parent company. There could be exceptions, but they would be rare.

the parent company provides guidance on running the business.

YES, That's the major advantage, the parent company provides operation guides for all aspects of the business as well as taking charge of the publicity and promotions.

the franchisee can choose their own suppliers.

Absolutely not. Most of the time, the franchisee will order all his supplies (from cups to food) from the parent company, or from an approved-list of suppliers.

User Dcc
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