The Main Benefit of Franchise Ownership Is

question 26

Short Answer

The main benefit of franchise ownership is:
• the return on the initial investment is quick
• the concept is proven and less likely to fail
• the initial fees paid to own a franchise are low
• all franchise owners become millionaires

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Definitions:

Safety Inventory

Additional stock kept to mitigate the risk of stockouts and production halts due to fluctuations in demand and supply chain disruptions.

Supply Chain Manager

An expert in charge of supervising and directing the strategy and operations of a corporation's supply chain and logistics.

Replenishment Cycle

The recurring process of restocking sold-out or used products in inventory to maintain a desired stock level.

ESC (Expected Shortage per Cycle)

A metric used in inventory management forecasting the expected stockout quantity for a given inventory cycle, aiding in optimization and planning.