State and elaborate on ONE source of funding that the franchisee used when opening the franchise
Answer (1)
One common source of funding that a franchisee can use is a bank loan. This is when the franchisee borrows money from a bank to cover the costs of opening the business, such as franchise fees, equipment, or initial inventory. The advantage of a bank loan is that it gives the franchisee enough capital to start right away without needing full savings. However, the franchisee must repay the loan with interest, which means the business needs to earn enough profit to cover both expenses and loan payments.
