Question

Gina and Celine want to start a business together in the women's apparel and accessories industry. While Gina thinks that they should hire designers and establish their own clothing brand from scratch. Celine believes that it will be easier to start the business by obtaining the franchise rights from an already established designer brand called Nava. Which of the following arguments made by Celine will valid in convincing Gina to accept the idea of starting a business by obtaining the franchise rights of Nava? a.They will have greater freedom to make business-related decisions if they obtain the franchise. b.They will have greater flexibility to add or delete a product from the existing line if they obtain the franchise. c.They can effectively leverage the national and local advertising programs sponsored by the franchiser. d.They can earn good revenues without having to pay any fee or share profits with the franchiser. e.They can commercialize their creativity and ideas without fa

Answer 1

Answer:

The correct answer is letter "C": They can effectively leverage the national and local advertising programs sponsored by the franchiser.

Explanation:

A franchise is a business, in which a franchisee acquires access to the franchisor's proprietary knowledge, processes, and trademarks. The franchisee buys the right under an established brand name to sell a product or service. Consumers already know the brand, so no additional resources must be used to launch the product.

Thus, Celine is correct by arguing that by franchising Nava, Gina and her can take advantage of the domestic and international advertising programs of the firm.