Question

John is an entrepreneur who plans to enter a franchise contract with a hotel business. Which of these is an advantage that John might enjoy as a franchisee?
A.
He will not have to make any investments according to the franchise contract.
B.
He will be able to change the hotel’s business management techniques to suit his requirements.
C.
He will be able to gain knowledge and support from the hotel business to run the franchise.
D.
He will be completely certain about the success of his franchise business.

Answer 1

Answer:  

D. He will be completely certain about the success of his franchise business

Explanation:

Franchise is a contract between or joint agreement between two parties where an already running business sells the right to use and sell its name and products. Since it is an already running the business, the business model is verified and proven for benefits.

Hence John is completely certain about the success of his franchise business. Since he is buying the name and product, there is an investment and no changes in the business management techniques can be made.

Answer 2

The answer is C:

In most Franchise businesses, the franchisor provides ongoing guidance and support, and a developed way of doing business. In addition, they offer a higher rate of success as compared to start-up businesses and you may find it easier to secure finances for a franchise. You will get all the benefits that are attached with big businesses for a small business ownership.