Identify the advantage of franchising to the franchisee.

A. Product acceptance

B. Management expertise

C. Capital requirement

D. Continuing cost implication

E. Inability to provide services

Choose the correct answer from the options given below:

A, B and C only

The correct answer is option (4) - A, B and C only.

One of the most important advantages of buying a franchise is that the entrepreneur does not have to incur all the risks associated with creating a new business. Typically, the areas that entrepreneurs have problems with in starting a new venture are product acceptance, management expertise, meeting capital requirements, knowledge of the market, and operating and structural controls. In franchising, the risks associated with each are minimized through the franchise relationship.