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Please visit the U.S. Small Business Administration's website here - SBA , find the information about franchising and answer the following questions:
https://www.sba.gov/
1) List the two primary forms of business franchises. Which is the simpler form? Which form requires the most complex business relationship?
2) What are some of the costs a franchisee may be required to pay in exchange for the use of a franchisor's name, and assistance? What are some of the controls a franchisor may impose upon a franchisee?
3) What does the Federal Trade Commission (FTC) require of franchisor's who make claims about how much a franchisee can earn? What does the FTC's Franchise Rule require of the franchisor before a franchisee is asked to sign a contract? What information should be provided in a franchisor's disclosure document?
4) What are some questions a potential franchisee should ask about training when investigating a franchise offer?
An important law in economics is the "Law of Diminishing Marginal Utility". Discuss what this law is and provide an example of diminishing marginal utility you've encountered recently.
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