Which of the following is the primary disadvantage of franchising as a foreign market entry strategy?
A) It is usually a one-time activity.
B) quality control
C) A firm loses partial control of its business finances.
D) high transportation costs
E) The costs of setting up and maintaining a manufacturing facility and permanent presence in a foreign country can be high.

Question

Quizplus · Accepted Answer

The primary disadvantage of franchising as a foreign market entry strategy is maintaining quality control. As the franchisee has partial control of the business operations, it is challenging to ensure that they follow the same standards and maintain consistency in the product or service quality. This can negatively impact the reputation of the franchisor's brand.

Which of the Following Is the Primary Disadvantage of Franchising