Question

Suppose the owners of Mike Boyle Strength and Conditioning feel that the neighboring city of Worcester, Massachusetts is a good market for another location. If MBSC were to franchise their brand, Mike Boyle could benefit from:________. a. a well-controlled distribution of the brand without spending the money to construct and operate the franchise. b. guidance and advice from the franchisee on how to operate the business.c. marketing materials to use in local advertising.d. starting a business with limited capital and utilizing the business experience of others.

Answer 1

Answer:

The correct answer is letter "A": a well-controlled distribution of the brand without spending the money to construct and operate the franchise.

Explanation:

A franchise is a company where one party (the franchisee) acquires access to the proprietary information, procedures, and trademarks of a well-established business (the franchisor) in return for a fee or royalty. The franchisee takes advantage of the brand name to generate sales quickly and the franchisor is benefited from the spread of the name of the brand without investing in infrastructure and personnel.