All of the following are advantages to buying a franchise except:
A) restrictions on creativity
B) potential for business growth
C) availability of financing
D) a proven product or service within an established market
E) franchisor’s ongoing support
Franchising involves the participation of a parent company that grants a foreign company the right to conduct business in its name. The franchise becomes successful only when the customers are able to recognize the brand.
Answer to question 1
The correct option is option E) Franchisors ongoing support
Franchising is possible only with the help of franchisor support. But it is not sure that the franchising company will receive continuous support from the franchisor. If, at any time, the franchisor is not satisfied with the franchising companies progress, the support received may be at stake anytime.
Option A) is incorrect because no restrictions are there on the franchising companies creativity.
Option B) is incorrect because there of no limit to the growth of a franchising company
Option C) is incorrect because there are several forms by which a company can gain financial support.
Option D) is incorrect because an established market can reach any height with the quality product that they offer.
Answer to question 2
Answer to question 3
Answer to question 4