Question

Which of the following is a disadvantage faced by a franchise business owner that would not be encountered by an independent business owner?

a)lack of management training and support
b)franchising fees and royalties
c)high cost of products
d)government regulations

Answer 1

Answer:

b. franchising fees and royalties

Explanation:

an independent business owner would not encounter this.

Answer 2

Answer:

b) franchising fees and royalties

Explanation:

A franchise business owner has to pay franchising fees that is the one time payment that allows the franchisee to be able to own and operate that business. Also, the franchisee has to pay royalties that are monthly payments that depend on the earnings of the business. These costs don't have to be paid by an independent business owner because this person will start his/her company from scratch with its own image.