Question

Keith enjoys cutting hair and he just graduated from a cosmetology program. He has opened up his own shop, but it has not grown very much in its first year. Keith decides maybe it’s better to try a brand recognition of a national chain, but he wants to stay in his local area and be the owner of the shop. Which type of retail model would fit Keith’s business goal best?
online retailing


malls and shopping centers


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Answer 1

Answer:

Franchises.

Explanation:

A franchise is formed when a third party is given the right to market products using the brand name of a parent company. There is usually an agreement between the parent company and the third party on profit sharing from the franchise.

In this scenario Keith wants to try a brand recognition of a national chain, but he wants to stay in his local area and be the owner of the shop.

The best option is to form a franchise where he can use the national brand to grow his business locally.