Franchises will generally have higher ______ but they offer ongoing support and training.

Franchises will generally have higher ______ but they offer ongoing support and training.

• A. Bankruptcy rates
• B. Start-up costs
• C. Taxes
• D. Training costs

Answer: (B)

Franchises generally require a higher start-up investment because you pay upfront fees for the rights to the brand, initial training, equipment, inventory, and setup to get you operating under the franchise system. In return, you receive ongoing support and training from the franchisor, helping you maintain brand standards and reduce the learning curve. The other options don’t fit this trade-off: bankruptcy rates aren’t determined by franchising, taxes aren’t inherently higher for franchises, and training costs are typically included as part of the franchise package rather than being a separate ongoing expense.

Franchises generally require a higher start-up investment because you pay upfront fees for the rights to the brand, initial training, equipment, inventory, and setup to get you operating under the franchise system. In return, you receive ongoing support and training from the franchisor, helping you maintain brand standards and reduce the learning curve. The other options don’t fit this trade-off: bankruptcy rates aren’t determined by franchising, taxes aren’t inherently higher for franchises, and training costs are typically included as part of the franchise package rather than being a separate ongoing expense.