Understanding Franchising

What is a key benefit of choosing a franchise model over starting a business from scratch?

• Complete freedom in business operations

• Access to a proven business model and brand

• No initial investment required

• Ability to create a unique brand identity

Who is responsible for owning the trademarks and business model in a franchise?

• The franchisee

• The customers

• The franchisor

• The store manager

Which of the following is an advantage of being a franchisee?

• Unlimited creative control

• No need to pay royalties

• Economies of scale in purchasing

• No need for initial training

What is a potential disadvantage of running a franchise?

• No support from the franchisor

• High level of creative freedom

• Restrictions on business modifications

• Lack of brand recognition

Why might a franchisee feel frustrated with their business model?

• They have too much freedom

• They have to create their own brand

• They cannot make changes to suit their preferences

• They do not receive any training