In which of the following type of franchising model, the franchisor usually provides a significant amount of assistance to the franchisee in starting and managing the company?
Answer & explanation
Correct answer: option 4
Business format franchise opportunity: This is the most popular form of franchising. In this approach, a company provides a business owner with a proven method for operating a business using the name and trademark of the company. The company usually provides a significant amount of assistance to the business owner in starting and managing the company. The business owner pays a fee or royalty in return. Typically, a company also requires the owner to purchase supplies from the company.