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 franchise owner typically involves paying high initial costs and fees, which can include franchise fees, licensing fees, and equipment costs. These costs can sometimes be a significant barrier to entry for potential franchisees. Poor name recognition and visibility, lack of financing, and lack of managerial assistance can also be potential problems for franchisees, but they are generally less common than high initial costs and fees.

Sierra Is Interested in Becoming a Franchise Owner, by Opening