1 What is the role of the franchiser when a franchise is purchased? 2. List three advantages of buying an existing business.
3. Imagine that you want to open a doggy-daycare business. Give an example of a human risk, a
natural risk, and an economic risk associated with opening this business.
4. Using your answers from the previous question, give one way to manage or lessen the risk you
identified.
5
Explain why starting a business from scratch is more difficult than purchasing a franchise, buying
an existing business, or joining a family business.
There is a young entrepreneur who is looking for a loan to buy her aunt and uncle's dry-cleaning
business. The potential entrepreneur is only twenty-seven but has worked hard and saved 20
percent of the cost of the business. The business has been quite successful and established for
the past 17 years. Because the owners want to retire, they need to sell the business in its entirety
at market value. There are two other family members that work at the business; however, one is