The Freemans purchased an indoor playground franchise in 2013. The indoor playground featured seven inflatables, three party rooms, and a small concession area. There were 25 franchises across Canada, which were popular venues for birthdays and team parties. Early on, the Freemans' location performed well, and party rooms were booked nearly every weekend. However, in 2017 the Freemans were forced to close their franchise. The Freemans' insurance costs were more expensive than they anticipated, and competition from other indoor playgrounds took a toll on the Freemans' profits. Which of the following points does this scenario exemplify?
A) expanding a franchise too quickly can cause failure
B) start-ups have a higher success rate than franchises
C) owning a franchise does not guarantee success
D) the franchise dictates all aspects of the business
Correct Answer:
Verified
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