Read the information below about an independent bookshop. Its owner is considering becoming a franchisee of a national chain. The chain would provide a reco...
Question 1 Report
Read the information below about an independent bookshop. Its owner is considering becoming a franchisee of a national chain. The chain would provide a recognised brand, staff training and rules about shop layout. However, the owner would have less freedom over which products to sell.
(a) Identify one benefit of becoming a franchisee for the bookshop owner. [1]
(b) Explain one reason why the owner may not want to become a franchisee. [1]
Answer Details
(a) One benefit is use of an established, recognised brand. [1] Staff training or business support would also be acceptable benefits.
(b) The owner may not want to become a franchisee because they would have less independence over decisions such as products, prices or shop layout. [1]
Exam focus: Franchising offers support and an established brand, but in return the franchisee must follow the franchisor’s rules.
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