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Answer :
Final answer:
The disadvantage for Max in purchasing a franchise is that he would have to adhere to the franchise's specific product offerings and could not use his own family's pizza sauce recipe.
Explanation:
One disadvantage to choosing the franchise option for Max, as he considers opening a pizza and sub restaurant, would be that Max will have to use the franchise's pizza sauce instead of his family recipe. This requirement limits his ability to differentiate his product in a market with many competitors offering similar Italian fast food. Although the franchise model provides a business model, training, and operations support, it often comes with strict brand standards and product consistency requirements, which would prevent Max from using unique or personal recipes.
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The right statement is One disadvantage of the franchise option for Max is that he will have to use the franchise's pizza sauce instead of his family recipe.
- When considering opening a pizza and sub restaurant, Max is comparing purchasing a well-known franchise to starting his own small business.
- One significant disadvantage of the franchise option is that Max will have to use the franchise's pizza sauce instead of his family recipe.
- This could be a drawback if Max's family recipe is a unique selling point that he believes will attract more customers.
- While a franchise provides a proven business model, training, and support, it also imposes restrictions and requires following the established protocols of the franchisor, which might limit Max's creativity and flexibility.
