How will you save money by buying a franchise?
A. franchises require less investment than new buisness
B. you employees will be paid bye the corporation
C. you can get a volume discount on your products
D. you wont have to advertise
Popularity: 1% [?]
Permalink for How will you save money by buying a franchise?
createaclick said,
May 2, 2010 @ 2:48 pm
None are actually correct…
A. Franchises require much more money that it would normally cost to open a similar business.
B. You still pay your employees (the corporation may process payments but it still comes out of your profits and you pay them a fee for the accounting).
C. Maybe, but you have to buy and use their products regardless if you can find them cheaper.
D. You still have to advertise locally, they handle the nationwide advertising campaigns (which your franchise fees pay for).
jeff410 said,
May 2, 2010 @ 2:56 pm
A, You avoid startup costs. This is the reason for acquisitions of operating companies versus organic growth
IrressitibleCher said,
May 2, 2010 @ 2:56 pm
C) You can get a volume discount on your products.