Sipho would like to own a business through a franchise. How many of the following statements are not correct about a franchise? a. A franchisee grants a license to the franchise. b. A franchise pays the franchisee an initial fee. c. A franchisee train
To determine how many of the statements about a franchise are not correct, let's analyze each statement:
a. **A franchisee grants a license to the franchise.**
- **Incorrect.** It is the franchisor who grants the license to the franchisee.
b. **A franchise pays the franchisee an initial fee.**
- **Incorrect.** Typically, the franchisee pays the franchisor an initial fee to obtain the franchise rights.
c. **A franchisee trains the franchisor.**
- **Incorrect.** The franchisor typically trains the franchisee, not the other way around.
d. **A franchisor allows creativity and innovation.**
- **Partially correct.** While some franchisors may allow limited creativity within set parameters, most franchise systems require adherence to specific guidelines and standards.
e. **A franchisee benefits from the franchise’s known brand.**
- **Correct.** This is a primary reason many people choose to become franchisees.
Now, counting the incorrect statements:
- Statements a, b, and c are incorrect (3 incorrect statements).
- Statement d is not entirely inaccurate but somewhat subjective; however, it's often not true in strict franchise agreements.
- Statement e is correct.
Considering the context of your question and whether we count d as incorrect based on the rigidity of franchise agreements, we might say there are 3 incorrect statements.
So the answer would be **c. three**.