Sarah and Candice want to start a business together in the women's apparel and accessories industry. While Sarah thinks that they should hire designers and establish their own clothing brand from scratch, Candice believes that it will be easier to start the business by obtaining the franchise rights from an already established designer brand called Monarch. Which argument made by Candice will be valid in convincing Sarah to accept the idea of starting a business by obtaining the franchise rights of Monarch?

a. They will have greater freedom to make business-related decisions if they obtain the franchise.
b. They will have greater flexibility to add or delete a product from the existing line if they obtain the franchise.
c. They can effectively leverage the national and local advertising programs sponsored by the franchiser.
d. They can earn good revenues without having to pay any fee or share profits with the franchiser.
e. They can commercialize their creativity and ideas without facing any restrictions from the franchiser.

C. They can effectively leverage the national and local advertising programs sponsored by the franchiser.

Explanation:

If Sarah and Candice obtain the franchise rights from an already established designer brand, they will have lesser freedom to make business-related decisions as they would have to be accountable to the designer brand based on the terms & conditions which they agreed to. Hence, option A is not a valid argument

If Sarah and Candice obtain the franchise rights from an already established designer brand, they will have lesser flexibility to add or delete a product from the existing line because they do not have an exclusive right to the franchise. Such decision falls uner the jurisiction of Monarch. Hence, option B is not a valid argument

If Sarah and Candice were to purchase the franchise rights of Monarch, they would have to share a portion of their good revenues & share profits with the franchiser since they enjoy the publicity associated with the brand name. Hence, option D is not a valid argument

If Sarah and Candice were to purchase the franchise rights of Monarch, they cannot commercialize their creativity and ideas without facing any restrictions from the franchiser. Any such creative ideas has to be endorse by Monarch. Hence, option E is not a valid argument

If Sarah and Candice were to purchase the franchise rights of Monarch, they stand to benefit from the publicity & advertisements of Monarch at no extra cost to their startup. They can effectively leverage the national and local advertising programs sponsored by the franchiser. Hence, option C is the valid argument to convince Sarah

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