Which of the following statements about purchasing a franchise is false?
A. One of the greatest benefits of buying a franchise is gaining access to a business system that has a proven record of success.
B. When they purchase their franchises, franchisees gain the right to use a regionally or nationally known brand name, which usually provides a great deal of drawing power.
C. Franchisees benefit from the power of a regional or national advertising program that the franchisor coordinates.
D. Potential franchisees are limited to a relatively small set of franchise options because franchisors are concentrated in only a few industries, such as fast food, hotels and motels, automotive parts, and a handful of others.
E. Most franchises offer franchisees training programs that include both classroom and onsite instruction to help them learn to operate their franchises efficiently.

D. Potential franchisees are limited to a relatively small set of franchise options because franchisors are concentrated in only a few industries, such as fast food, hotels and motels, automotive parts, and a handful of others.

Explanation:

A franchise is a business model where the owner or the franchisor, licenses another party, the franchisee, to operate a business under the brand name of the franchisor. The franchisee acquires the right to use the business systems, logo, colors and working model of the franchisor. Famous examples of franchise business include MacDonald and Starbucks restaurants.

The franchise model operates in almost all industries in the economy. The business model is not limited to any specific sectors.

The franchise business model is gaining popularity in the following sectors.

Food and Restaurant Franchises
Cleaning and Maintenance
Automotive Franchises
Home Service Franchises
Travel & Lodging
Business Services
Retail Franchises