Which of the following statements about a franchise is most true?
A) One advantage is that the franchisor enjoys the benefits of being the sole proprietor
B) The failure rate of franchises is lower than for sole proprietorships
C) Franchising has low start up costs
D) Franchisors share the profits

Question

Quizplus · Accepted Answer

The statement that the failure rate of franchises is lower than for sole proprietorships is most true. While franchisors do enjoy some benefits of being the sole proprietor, franchising typically involves higher start up costs and the franchisors do not share profits in the same way as a traditional partnership.

Which of the Following Statements About a Franchise Is Most