One Important Consideration When Prospecting for a Good Franchise Business

question 124

Multiple Choice

One important consideration when prospecting for a good franchise business is

• A) the saturation rate of the franchise. The more saturation the better.
• B) the market potential for the product or service, at the prices you need to charge.
• C) the population level of the area where you will operate. Large populations are too overwhelming, often needlessly increasing demand.
• D) a limited disclosure statement, and being mindful that any disclosure statement may limit your success.

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Definitions:

Per Capita Incomes

The average income earned per person in a certain area or country, calculated by dividing the area's total income by its population.

Birth Rates

The average number of births per 1,000 people in a given population during a specific period of time.

Demographic Transition

The transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Population Growth

An increase in the number of individuals in a population over a specific period of time.