Which of the following is a drawback of buying a franchise?
A) The franchiser does not provide any guidance to the franchisee.
B) Franchises are available in a very limited range of endeavors.
C) Franchisers have to identify their market niche and conduct their own sales activities.
D) The initial investment is quite high for the franchisee.

Question

Quizplus · Accepted Answer

The initial investment required to buy a franchise can be quite high, ranging from tens to hundreds of thousands of dollars. This can be a significant drawback for many potential franchisees who may not have access to that level of capital.

Which of the Following Is a Drawback of Buying a Franchise