Which of the following benefits do franchisees enjoy over other small business owners? Select the two correct answers.(1 point)
Responses
Franchises have more control over the goods and services that they provide.
Franchises have more control over the goods and services that they provide.
Franchises are less expensive to operate than other small businesses.
Franchises are less expensive to operate than other small businesses.
Franchises have lower start-up costs than other small businesses.
Franchises have lower start-up costs than other small businesses.
Franchises benefit from the successful marketing provided by franchisors.
Franchises benefit from the successful marketing provided by franchisors.
Franchises have a lower 5-year failure rate than other small businesses.
Franchises have lower start-up costs than other small businesses.
Franchises benefit from the successful marketing provided by franchisors.
The two correct answers are:
1. Franchises benefit from the successful marketing provided by franchisors.
2. Franchises have a lower 5-year failure rate than other small businesses.
The correct answers are:
1. Franchises benefit from the successful marketing provided by franchisors.
2. Franchises have a lower 5-year failure rate than other small businesses.
To determine the correct answers, you need to consider the advantages that franchisees have over other small business owners. Let's analyze each option:
1. "Franchises have more control over the goods and services that they provide."
This statement is not entirely accurate. In a franchise system, the franchisor generally sets specific guidelines and standards for the goods and services offered by franchisees. While franchisees do have some control within those guidelines, they often have less freedom compared to independent small business owners.
2. "Franchises are less expensive to operate than other small businesses."
This statement is not necessarily true. The cost of operating a franchise can vary depending on the industry, location, and specific franchise agreement. While franchises benefit from the support and infrastructure provided by the franchisor, there are also ongoing fees and royalty payments that may make it more expensive than starting an independent small business.
3. "Franchises have lower start-up costs than other small businesses."
This statement is generally true. Franchises often have lower start-up costs compared to starting an independent small business. This is because franchises provide a proven business model, established brand, and support from the franchisor. The franchisor's assistance in site selection, training, and initial set-up can help reduce the costs and risks associated with starting a small business.
4. "Franchises benefit from the successful marketing provided by franchisors."
This statement is correct. One of the benefits of being a franchisee is benefiting from the successful marketing strategies and campaigns provided by the franchisor. Franchisors typically have established marketing plans and resources that can help increase brand awareness and attract customers to franchise locations.
5. "Franchises have a lower 5-year failure rate than other small businesses."
This statement is also correct. Statistically, franchises tend to have a lower failure rate compared to independent small businesses. This is because franchises operate based on a proven system, benefit from established brand recognition, and receive ongoing support from the franchisor.
Based on the explanations above, the correct answers are:
1. Franchises benefit from the successful marketing provided by franchisors.
2. Franchises have a lower 5-year failure rate than other small businesses.