Your friend Matt comes to you for advice because of your amazing business prowess. He would like to start his own business, but he is concerned about the high failure rate. If possible, he would like to mitigate his risk somewhat. He also has limited capital and not much business experience. You recommend that Matt consider opening a _______________, but you warn him that one disadvantage to doing so is that he would have _____________.

Question

Quizplus · Accepted Answer

The best choice for Matt would be to consider opening a franchise. Franchising offers the benefit of an established business model with a proven track record, which reduces the risk of failure to some extent. Additionally, franchises come with built-in brand recognition, which can be quite helpful for a new business. However, one disadvantage to franchising is that the franchisee generally has less control over the business than with other types of businesses.

Your Friend Matt Comes to You for Advice Because of Your