Which statement about capital requirements in franchising is not true
A) Franchisees pool monies to lower the costs for advertising and sales promotion.
B) Most franchisors will offer managerial assistance on the basis of need upon the start of the franchisee.
C) Newsletters and other publications reflecting new ideas and developments are continuously sent to franchisees.
D) The franchisee has to spend resources to establish the credibility of the business.

Question

Quizplus · Accepted Answer

The franchisee benefits from the established credibility and brand recognition of the franchisor, which means they do not have to spend resources to establish the business's credibility. This is one of the key advantages of buying into a franchise.

Which Statement About Capital Requirements in Franchising Is Not True