A franchise offers training, national advertising and exclusive territory but charges an initial fee and 8% of sales. Which conclusion is most accurate?
Support may reduce start-up risk, but fees and restrictions could reduce profit and control
Exclusive territory guarantees enough demand to make a profit
National advertising is free because it is provided by the franchisor
Paying a percentage of sales means the franchisee has no other operating costs, restrictions or risks
37 exam-style questions on Edexcel GCSE Business 1.4 Making the business effective, covering 1.4.1a Limited liability, 1.4.1b Types of business ownership for start-ups, 1.4.1c Franchising, 1.4.2a Factors influencing business location, 1.4.2b Impact of the internet on location, 1.4.3a What the marketing mix is, 1.4.3b Balancing the marketing mix, 1.4.3c Impact of technology on the marketing mix, 1.4.4a The role and importance of a business plan, and 1.4.4b The purpose of planning business activity. Each one has a worked solution and a mark scheme showing where the marks go.