Whilst at Art College, Lucy made Christmas cards for friends and relatives. She wants to start a full-time business but needs to decide between setting up as a sole trader or buying into a franchise. The market for Christmas cards is very competitive but Lucy produces a card that is designed and made to the customer’s exact requirements.
Which ONE of the following could be an advantage to Lucy if she brought into a franchise?
Select ONE answer:
- A franchisee makes all their own decisions
- A franchisee pays lower rates of VAT
- The franchisor provides continued help and support
- The franchisor pays the franchisee to set up in business
Show the workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Business Studies KS4 & KS3 classes
The answer is 3
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