Question

econ301 2. What advantages do franchise business offer nonprofit that seek side business to generate revenues to support their causes

Answer 1

Explanation:

A franchise business is one that allows another business (or non-profit) to carry out certain commercial activities, in a sense acting as an agent for the company.

Consider the following advantages:

1. Capital

The franchisor (the company that grants permission) may provide all the capital required to open and operate the non-profit.

2. Better-quality management. The years of experience accumulated by the franchisor may be of benefit to the non-profit. Thus, improving the quality of operations.

Other benefits include;

• increase their speed of Growth  
• increased Profitability
• reduced Risk