Final answer:
The business-format franchise arrangement offers a reduced risk of failure option (d) to franchisees by providing a pre-established framework, recognized brand, and franchisor support, increasing the likelihood of success.
Step-by-step explanation:
One of the benefits of the business-format franchise arrangement is reduced risk of failure. Franchisees benefit from a well-established business model with a recognized brand name, tested operational practices, and ongoing support from the franchisor.
This pre-established framework often translates into a higher likelihood of success when compared to starting a new, independent business. The franchise system also provides efficiency in operations, predictability in products and services, calculability on pricing, and control over the business environment, all of which contribute to reducing the risk of business failure.