Which of the following is an advantage of franchising for the franchisee?
A) It is relatively cheap to setup a franchise.
B) It allows the franchisee complete freedom on how the business should be run.
C) It is shielded from any kind of negative halo effect.
D) It provides instant brand recognition for the franchisee.

Question

Quizplus · Accepted Answer

Franchising provides instant brand recognition for the franchisee as they can leverage the established reputation and marketing of the franchisor's brand. This can lead to increased customer traffic and easier market entry for the franchisee. Option A is incorrect as setting up a franchise can be relatively expensive due to the initial franchise fee, ongoing royalties, and other expenses. Option B is incorrect as the franchisee must operate within the franchisor's established system and business model. Option C is incorrect as franchisees may experience negative effects if the franchisor experiences a publicized crisis or scandal.

Which of the Following Is an Advantage of Franchising for the Franchisee