Day: July 2, 2021

Business Referral Networking UK offers the opportunity to buy one of its franchises for £25 000.

Which ONE of the following is an advantage of buying a franchise?

Select ONE answer:

1. Product rangeBuyer keeps all the profit
2. Buyer chooses own suppliers
3. Buyer makes all the decisions
4. Buyer uses existing brand name

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct ==> Definition of franchise; A business model that allows an individual or business to acquire a licence to use another firm’s branding, product knowledge and systems for a prescribed period of time.  Business Referral Marketing UK a licence to trade using their brand name, products and business systems at a cost of £25 000.  Franchisees who buy into the Business Referral Marketing UK franchise may find it easier and less risky to build a successful business with an existing brand name rather than start with a new and unknown business name.

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