Which of the following is true of combination franchising?
A) It is opposed to the concept of synergy.
B) Cultural clashes can lead to the breakup of this arrangement.
C) The firms in this arrangement should be competing against each other.
D) This type of merger weakens the participating firms.

Question

Quizplus · Accepted Answer

Combination franchising involves multiple firms coming together to form a single entity. Cultural clashes can occur as the participating firms may have different ways of doing business or different corporate cultures, which can lead to the breakup of the arrangement. This type of franchising is actually aimed at achieving synergy by combining the strengths of multiple firms. The firms should not be competing against each other since they are working together under a single franchise system. It is not a type of merger that weakens the participating firms.

Which of the Following Is True of Combination Franchising