Sierra is interested in becoming a franchise owner, by opening and operating one of 50 Cactus Katie's Grills, a very successful fast food chain specializing in food dishes from the American southwest. Which of the following problems is Sierra most likely to encounter if she agrees to become a franchisee?
A)high initial costs and fees
B) poor name recognition and visibility
C) lack of financing
D)lack of managerial assistance

Question

Quizplus · Accepted Answer

Becoming a franchisee usually involves paying high initial costs and fees to the franchisor. This can include fees for using the brand name, training, equipment, and other expenses. These costs can be a significant financial burden for new franchisees. In comparison, while poor name recognition and visibility, lack of financing, and lack of managerial assistance can be potential problems, they are not as inherent in the franchise model as high initial costs and fees.

Sierra Is Interested in Becoming a Franchise Owner, by Opening