Two Advantages of Owning a Franchise as a Franchisee Include

question 15

Multiple Choice

Two advantages of owning a franchise as a franchisee include ____.

• A) Perceived quality of the brand and payment of high royalty fees.
• B) Greater ability to secure financing and mandatory disclosures by the franchisor.
• C) Known brand and lack of control over operating standards.
• D) Legal assistance by franchisor and available on-site training from franchisor.

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Definitions:

Ratified

Ratification refers to the formal approval or confirmation of an agreement or treaty, often after the act has been signed or provisionally applied.

Lease

A contractual agreement where one party, the lessor, grants the other party, the lessee, the right to use a property or asset for a specified period in exchange for rental payments.

Preference Shares

Shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.