Which one of the following would be a reason to set up a new business as a franchise? Select one answer. A A franchisee can buy supplies from any supplier B The wage rates for all the franchises are the same C Franchisees can make all their own decisions. D A franchise has a lower risk of failure (Total for Question 10 = 1 mark)

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Which one of the following would be a reason to set up a new business as a franchise? Select one answer - Edexcel - GCSE Business - Question 10 - 2018 - Paper 1

Question 10

Which one of the following would be a reason to set up a new business as a franchise? Select one answer. A A franchisee can buy supplies from any supplier B The... show full transcript

Worked Solution & Example Answer:Which one of the following would be a reason to set up a new business as a franchise? Select one answer - Edexcel - GCSE Business - Question 10 - 2018 - Paper 1

Step 1

D A franchise has a lower risk of failure

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The correct answer is D: A franchise has a lower risk of failure. This is because franchises typically operate under established brand names with proven business models, which can provide a higher likelihood of success compared to starting an independent business from scratch.

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