Which one of the following would be a reason to set up a new business as a franchise? Select one answer. A franchisee can buy supplies from any supplier B The wage rates for all the franchises are the same C Franchisees can make all their own decisions. D A franchise has a lower risk of failure (Total for Question 10 = 1 mark)

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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 franchisee can buy supplies from any supplier B The wag... 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.

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Answer

The best choice is D: A franchise has a lower risk of failure. This is because franchises typically benefit from an established brand, existing customer base, and support from the franchisor, which can reduce the uncertainty and risks associated with starting a new business from scratch.

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