Franchisees sometimes wish to change the product or service offered by the franchisor to better fit local market needs abroad.Why are these changes a problem for franchisors?
A) Too many changes eliminate the need for the franchisors.
B) The royalties as a percentage of sales decrease.
C) Governments impose more stringent operating restrictions.
D) Sales decrease because consumers want to get the "real thing."

Question

Quizplus · Accepted Answer

Franchisees making too many changes can undermine the franchisor's brand consistency and value, potentially eliminating the need for the franchisor's established system and support.

Franchisees Sometimes Wish to Change the Product or Service Offered