Question

Which of the following statements about buying a franchise is most accurate?A) Franchisors are so closely regulated that there is virtually no chance for scams to succeed.B) Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.C) Franchise agreements are simple to evaluate, since federal law requires that all such agreements must be written in plain English with all fees and terms clearly explained.D) Buying a franchise is the simplest and least expensive way to set up a business, since the franchisor has already worked out all of the details for setting up and running the business.

Answer 1

Answer: B. Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market

Explanation:

A franchise is a method that has to do with the distribution of products or services which involves a franchisor, and a franchisee. A franchisee pays a royalty an initial fee in order to do business using the name of the franchisor.

Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.