Question

What are the primary advantages to owning a franchise? Select all that apply.

The franchisor provides brand-name recognition and marketing plans.
Franchises are inexpensive to start up and run.
The franchisor assumes all the risk in the business.
The franchisor provides training, management assistance, supplies, and a product.
Franchisees keep all their profits for themselves.

Answer 1

- The franchisor provides brand-name recognition and marketing plans. (Yes)
- The franchisor provides training, management assistance, supplies, and a product. (Yes)

The others are incorrect: franchises often require significant startup costs, the franchisee bears much of the business risk, and franchisees must pay fees/royalties so they do not keep all profits.