Which of the following is true of franchising?
A)A franchise is essentially an unpackaged business, where the policies, procedures, and buying patterns have to be established prior to beginning operations.
B)The purchase of a well-honed, thoughtfully positioned franchise can dramatically decrease the downside risk inherent in the process of starting a business.
C)There is no difference in the risk of buying a franchise and buying an existing business.
D)Franchising is viewed as a new business entrepreneur's creation of a business from scratch.

Question

Quizplus · Accepted Answer

Franchising allows individuals to purchase a proven business model, with established policies, procedures, and buying patterns. This decreases the risk involved in starting a new business from scratch, as the franchise has already proven successful. Therefore, option B is correct. Options A, C, and D are incorrect as they do not accurately describe franchising.

Which of the Following Is True of Franchising