DECA Hospitality and Tourism Cluster Practice Exam

What is a main advantage of franchise ownership for a business owner?

1. Independence in business decisions.

2. Brand recognition and support.

3. Lower initial investment requirement.

4. Full control over marketing strategies.

The correct answer is: Brand recognition and support.

The main advantage of franchise ownership for a business owner is brand recognition and support. When a business owner becomes a franchisee, they are granted the right to operate under an established brand that already has a reputation and customer base. This built-in brand recognition can significantly enhance the franchisee's chances for success, as customers are more likely to engage with a familiar and trusted name. In addition to brand recognition, franchise owners typically benefit from ongoing support from the franchisor. This support may include training, marketing resources, operational guidance, and other assistance that can help the franchisee navigate challenges and run their business more effectively. Overall, the combination of recognized branding and the support system provided by the franchisor can give franchise owners a significant advantage in a competitive marketplace.