Which of the following is true regarding Franchising?
A)Franchising is a principal entry mode for the service industry.
B)The franchisor provides the franchisee with advertising and sales promotion support.
C)The franchisee receives the right to use the franchisor's brand name and all related trademarks.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Franchising is a principal entry mode for the service industry. It is the service industry's equivalent to licensing. The franchisor gives the franchisee the right to use its brand name and all related trademarks and its business know how, such as secret recipes. The franchisor also typically provides the franchisee with advertising and sales promotion support. The franchisee is responsible for paying the franchisor royalties.

Which of the Following Is True Regarding Franchising