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What Are the Primary Advantages and Disadvantages of a Franchise

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Essay

What are the primary advantages and disadvantages of a franchise arrangement for a franchisee?


Definitions:

Straight-Line Method

A method of allocating the cost of an asset evenly over its useful life.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate and applies it to the reducing book value each year.

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