Question

There are two primary advantages to buying a franchise over other forms of business ownership. First, the franchisor typically provides training, technical expertise, and other forms of support, and second, ________.

a) franchise organizations are consistently more profitable than non-franchise organizations in the same industry
b) the franchisor provides an entrepreneur the ability to own a business using a tested and refined business method
c) franchising is almost a sure way of making a profit
d) franchisors typically encourage creativity on the part of franchisees
e) a franchise agreement is typically easy to exit if expectations aren't met

Answer 1

The second primary advantage of buying a franchise is that the (Option b) franchisor provides the franchisee with a tested and refined business method, reducing the risk associated with starting a new venture.

Step-by-step explanation:

There are two primary advantages to buying a franchise over other forms of business ownership. Firstly, the franchisor typically provides training, technical expertise, and other forms of support. Secondly, the franchisor provides an entrepreneur the ability to own a business using a tested and refined business method (option b). This means that as a franchisee, you get to leverage a business model that has already been successful, reducing the risks associated with starting a new business from scratch.