Final answer:
Amy might select a franchise due to the brand recognition and franchisor support, which can attract customers and assist in operations. However, she must consider costs and potential limits on business autonomy.
Step-by-step explanation:
One of the potential reasons Amy might choose to open a franchise is brand recognition and support. When selecting a franchise, the franchisee benefits from the well-established name, which can draw customers who are already familiar with and loyal to the brand. This brand recognition can be a powerful tool for attracting business without the need for extensive marketing efforts by the new franchise owner.
Moreover, franchises often come with comprehensive support from the franchisor, which includes assistance in training, establishment of operations, and ongoing operational support. Amy would not only receive help in setting up her business but would also continue to benefit from franchise support to address any business challenges that arise.
However, Amy must weigh these advantages against the cost of the franchise fee and ongoing royalty payments as well as any limitations on her independence and autonomy as a business owner. While a franchise offers various support structures, it can also come with restrictions that could impede an entrepreneur's creativity or preferred business practices.