Which of the following is a disadvantage of franchising?
A) It restricts the franchisor from expanding.
B) It results in the franchisor taking all the financial burden of the franchisees.
C) It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.
D) It does not provide sufficient incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs.
E) It requires the franchisees to create a new business model and plan strategies.

Question

Quizplus · Accepted Answer

Franchising requires delegation of authority to franchisees, and the franchisor may not enjoy complete control. This can result in challenges for the franchisor in maintaining brand standards and ensuring consistency among the franchise locations.

Which of the Following Is a Disadvantage of Franchising