Which of the Following Statements Is True of a Franchise

Multiple Choice

Which of the following statements is true of a franchise process?

A) The founding of a franchise is quite different in form and method from creating a new business from scratch.
B) A market analysis by a franchisor is the best available method to understand a market and to organize franchise operations.
C) A significant up-front cash payment is necessary for making an initial fee payment by a franchisee.
D) The entrepreneur can easily leave the franchisee business if he or she does not enjoy the business venture.