Why Is the Purchase of a Franchise Not a Guarantee

question 42

Essay

Why is the purchase of a franchise not a guarantee of success for the franchisee?

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Definitions:

Fixed Cost

Expenses that do not change in total over a wide range of activity levels or over the short term, such as rent or salaries.

Special Order

is an order that is outside of a company’s normal production schedule and often requires unique specifications or pricing.

Vertically Integrated

A company structure where the company controls multiple stages of production, distribution, or both within the same industry.

Entire Value Chain

The full range of activities involved in designing, producing, marketing, and selling a product or service, from initial concept to delivery to the end user.