Final answer:
To open a well-known business, a franchise provides entrepreneurs the opportunity to operate under an established brand with support from the franchisor. Other business structures such as sole proprietorships, partnerships, corporations, and LLCs also offer varying benefits and responsibilities.
Step-by-step explanation:
Types of Business Ownership
When considering what type of ownership lets you open a well-known business, a franchise is a popular option. Purchasing a franchise means you buy the rights to open and operate a business that is part of an established brand, benefiting from the franchisor's existing business model, training, and support. You will, however, have to pay a franchise fee as well as royalty fees to the franchisor.
Sole proprietorship is the simplest form of business ownership where one individual, the proprietor, owns and runs the business. This type is straightforward to manage and start, with the owner keeping all profits after taxes. A sole proprietor assumes full liability and responsibility for the business.
Other business structures include partnerships, corporations, and Limited Liability Companies (LLCs). Each structure offers different levels of personal liability protection, tax implications, and investment opportunities.