Viola wants to be a business owner, and is contemplating whether to start her own business or open a franchise. Which of the following, if True, would be a compelling reason for Viola to open a franchise rather than start a new business?

Question

Quizplus · Accepted Answer

A) The start-up cost for most franchises is around $50,000 and the royalty fee is usually between 6 and 10 percent. The substantially lower costs of $3,000 and 5 percent would be a compelling reason to take on a franchise if it also has acceptable growth potential.

Viola Wants to Be a Business Owner, and Is Contemplating