Answer: When a company is able to offer a good product and enjoy strong customer demand, a franchise owner not only is able to take advantage of the corporate identity but its strong customer base, as well.
A franchise is a kind of a license which allows the party who acquires it (franchisor) access to an business' (franchisor's) proprietary knowledge and processes in order to sell products or provide services under the franchisor's name.
A franchisee associates itself with a well proven business model and gains access to the franchisor's customer base. Additionally, the franchisor provides assistance by training the franchisee and his personnel to provide a uniform product or service experience to customers across all the stores.
All these factors help in eliminating business risk and this constitutes a real advantage to a franchise.
Answer:
The correct answer is B, When a company is able to offer a good product and enjoy strong customer demand, a franchise owner not only is able to take advantage of the corporate identity but its strong customer base as well.
Explanation:
Franchising is a concept of marketing used to expand the businesses. The owners of the business give licence of their brand name, intellectual property, use of business products, and the rights to sell the branded products to the franchiser. This is a technique of expanding businesses. Business owners can't open their main offices in all the areas of the city, thus they give the licence to the franchiser and expand their business in this way.
So the franchiser enjoys the already settled brands of the company. And if the owner company offers some good products, the franchisers are directly benefited from their decisions.
