Question at position 26 What is a likely reason why someone would pay money for a franchise?They do not have knowledge in the industry or business model.They will not have to spend the same amount of time marketing and building the brand.They are not aware of basic business practices.They will not have to work as hard in running the business.

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BlackTom AI · Accepted Answer

The question asks for a likely reason someone would pay money for a franchise. To analyze properly, let's consider each option in turn and assess its plausibility.
Option 1: 'They do not have knowledge in the industry or business model.' This would generally be a reason someone might avoid a franchise rather than pursue one; franchising often appeals precisely because it provides industry knowledge and a proven business model. So this statement is not a strong or typical justification for purchasing a franchise.
Option 2: 'They will not have to spend the same amount of time marketing and building the brand.' This reflects a common advantage of franchising: franchisors provide brand recognition, marketing support, and a ready-made system, which can reduce the time and effort an individual must invest in brand-building and marketing. This is a plausible rationale for paying for franchise rights.
Option 3: 'They are not aware of basic business practices.' Similar to Option 1, this would be a disadvantage or a barrier, not a benefit. A franchise purchase is often pursued to gain guidance on business practices, not because someone is unaware of them. Therefore this is an unlikely motivation.
Option 4: 'They will not have to work as hard in running the business.' This overstates the ease of owning a franchise; franchisees still work hard, manage operations, and ensure standards. While there may be support and a defined system, the claim that they will not have to work as hard is inaccurate and misleading as a general motivation.

In summary, while multiple choices touch on related themes, the most coherent and accurate reason among the options is that franchising offers marketing and brand-building efficiency, i.e., they will not have to spend the same amount of time marketing and building the brand. The other options misstate benefits or imply unrealistic expectations about franchise ownership.

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