An evaluation of franchising would conclude that this type of arrangement:
A)has become the dominant form of business organization in Canada because it has many advantages and almost no disadvantages.
B)appeals to people who want to own a business,but are not comfortable starting a company from scratch.
C)has a much higher risk of failure than independent companies.
D)has little chance of success outside the United States because many foreign countries do not allow such arrangements.

Question

Quizplus · Accepted Answer

Franchising does have advantages such as proven business models, established brand recognition, and support from the franchisor, but it also comes with restrictions and fees that can limit the franchisee's flexibility and profitability. Therefore, franchising appeals to those who want a degree of assurance and guidance in running a business without starting from scratch. Option A is not accurate as franchising also has some disadvantages. Option C is not necessarily true as franchise businesses typically have higher success rates than independent start-ups. Option D is also not accurate as franchising is a global phenomenon and many countries have laws and regulations in place to regulate it.

An Evaluation of Franchising Would Conclude That This Type of Arrangement