Which of the following benefits do franchisees enjoy over other small business owners? Select the two correct answers.

A. Franchises benefit from the successful marketing provided by franchisors.

B. Franchises have lower start-up costs than other small businesses

C. Franchises have more control over the goods and services that they provide.

D. Franchises have a lower 5-year failure rate than other small businesses

E. Franchises are less expensive to operate than other small businesses.

Respuesta :

The following benefits a franchisee enjoys over other small business owners is:

  • A. Franchises benefit from the successful marketing provided by franchisors.
  • D. Franchises have a lower 5-year failure rate than other small businesses

A franchise is a business that operates by using the services of a franchisor who is in charge of branding the company and a franchisee who uses the name of the brand to do business and pays a royalty fee.

Small business owners are people who do the marketing, branding, packaging and sales by themselves without necessarily involving the services of a marketer.

Some of the benefits of a franchisee over small business owners are the facts that:

  1. They benefit from the successful marketing the franchisors provide
  2. They have a lower failure rate after 5 years.

  • Therefore, the correct answers are options A and D

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Answer:

A. Franchises benefit from the successful marketing provided by franchisors.

D. Franchises have a lower 5-year failure rate than other small businesses