Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________.
A) Fees
B) Accounting
C) Gains
D) Losses
E) Overhead

Question

Quizplus · Accepted Answer

Franchise fees are a cost that franchisees have to pay to the franchisor for the right to use their brand name, products, and services. These fees can be significant and can impact the profitability of the franchisee's business. However, by joining a franchise, the franchisee gains access to the purchasing power of the entire franchise system, which can result in lower costs for supplies, equipment, and other resources. These cost savings help to offset the franchise fees and other costs associated with running a franchise.

Any Cost Saving Resulting from Franchisee Purchasing Power Helps to Offset