A significant advantage a franchisee has over an independent business is the participation in the franchisor's ________ largely due to the ________ the franchise offers.

Question

Quizplus · Accepted Answer

The participation in the franchisor's centralized buying power provides the franchisee with economies of scale, which helps in reducing costs and increasing profitability. This is largely due to the fact that the franchisor has a greater purchasing power and can negotiate better deals with suppliers.

A Significant Advantage a Franchisee Has Over an Independent Business