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Franchising can be a beneficial way for entrepreneurs to get a head start in launching their own businesses since they do not have to pay the franchisor royalties after buying the franchise. true or false

User Riadh
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1 Answer

6 votes
6 votes

Answer:

false

Step-by-step explanation:

A franchise provides entrepreneurs with a shortcut way of starting a business without necessarily beginning from the scratch.

The entrepreneur is free to leverage on the trademark and the customer base of the franchisor. This eliminates part of the risk associated with starting an entirely new business.

However, the franchisee continues to pay royalty to the franchisor which makes the franchise arrangement quite expensive.

User Anton Rudeshko
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