What is a common reason for entrepreneurs to choose a franchise model?
Practice Questions
1 question
Q1
What is a common reason for entrepreneurs to choose a franchise model?
Complete control over business operations
Established brand recognition
Unlimited liability
High startup costs
Entrepreneurs often choose a franchise model for established brand recognition, which can lead to quicker customer acquisition.
Questions & Step-by-step Solutions
1 item
Q
Q: What is a common reason for entrepreneurs to choose a franchise model?
Solution: Entrepreneurs often choose a franchise model for established brand recognition, which can lead to quicker customer acquisition.
Steps: 5
Step 1: Understand what a franchise model is. A franchise model allows an entrepreneur to operate a business using the brand and business system of an established company.
Step 2: Recognize that established brands have a reputation. These brands are already known and trusted by customers.
Step 3: Realize that with brand recognition, customers are more likely to choose the franchise over a new, unknown business.
Step 4: Acknowledge that quicker customer acquisition means the business can start making money faster because people are already familiar with the brand.
Step 5: Conclude that this is a common reason why entrepreneurs prefer the franchise model.
