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Which one of the following would be a reason to set up a new business as a franchise? Select one answer - Edexcel - GCSE Business - Question 10 - 2018 - Paper 1
Question 10
Which one of the following would be a reason to set up a new business as a franchise? Select one answer. A A franchisee can buy supplies from any supplier B The ... show full transcript
Worked Solution & Example Answer:Which one of the following would be a reason to set up a new business as a franchise? Select one answer - Edexcel - GCSE Business - Question 10 - 2018 - Paper 1
Step 1
Select one answer.
Answer
When considering the reasons to set up a new business as a franchise, it's important to understand the key benefits that franchises typically offer. The most significant reasons include brand recognition, established business models, and support from the franchisor.
Out of the provided options, the correct answer is:
D: A franchisee can purchase supplies from any supplier. This indicates a level of independence that may attract entrepreneurs, as it offers flexibility in sourcing products compared to some franchises that may require specific suppliers. This flexibility can lead to better cost management and product quality, which are significant considerations for new business owners.