"Kindheart" is a successful brand name in the field of playschool across the country. They decided to increase the number of branches all throughout the country. For this purpose they decided to give exclusive rights to individuals in return for a regular payment. The various conditions included were: a. Interested individuals need to have Minimum 3000 feet area and are ready to invest around 15,00,000. b. Books and uniform to be procured from Kindheart headquarters only. c. Content, technical and accounting assistance would be provided. d. Teacher training for a month.
Identify the type of franchise.
Identify the type of franchise.
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.