Greg Plans to Open Up Three Hottie Pata′tee Franchises in the Greater

question 181

Multiple Choice

Greg plans to open up three Hottie Pata′tee franchises in the greater Denver area. He just informed you that he plans to negotiate with the franchisor to eliminate the Big Potato Head that graces the roof of these restaurants. Greg is likely to learn that:

• A)The parent company will give him a start-up cost break for the same amount that it would have to pay for three of these signs.
• B) He is making a smart decision because it is not the sign that will bring customers to his potato bar. It is the wide-selection of toppings and six different ways he will cook potatoes.
• C)It is non-negotiable due to company rules.
• D)His failure rate will not increase or decrease because franchises traditionally have low failure rates.

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