Question

Personal Finance and Economics S4 Patterson
Business Structures
Opening a Restaurant
Valentino and Eva are siblings who have inherited a large sum of money. They hope to use their inheritance to start a restaurant together. Valentino and Eva have worked in restaurants their entire lives and have strong business backgrounds, but they are concerned about the strong competition in their community.
Based on the scenario, why might a franchise be the best choice for Valentino and Eva's new restaurant?
Responses

A franchise allows Valentino and Eva to create their own unique restaurant concept without any restrictions.
A franchise allows Valentino and Eva to create their own unique restaurant concept without any restrictions.

A franchise requires Valentino and Eva to handle all aspects of marketing and advertising independently, which allows them to tailor their promotions to their specific community.
A franchise requires Valentino and Eva to handle all aspects of marketing and advertising independently, which allows them to tailor their promotions to their specific community.

A franchise allows Valentino and Eva to avoid paying any initial startup fees, which will save them money from their inheritance.
A franchise allows Valentino and Eva to avoid paying any initial startup fees, which will save them money from their inheritance.

A franchise provides Valentino and Eva with a well-known brand name and established customer base, which can help them compete against other local restaurants.

Answer 1

A franchise provides Valentino and Eva with a well-known brand name and established customer base, which can help them compete against other local restaurants.