A franchisor would most likely punish a franchisee for a contract violation when _________.
A) the franchisee runs a shabby facility in a highly visible location
B) the franchisee is part of a dense, tightly knit network of franchisees
C) strong relational governance allows the system to operate on norms of solidarity
D) the franchisor has invested significantly in the franchisee that has made the violation
E) performance ambiguity prevents the franchisor from clearly identifying the enforcement situation

Question

Quizplus · Accepted Answer

A franchisee running a shabby facility in a highly visible location can damage the brand's reputation, prompting the franchisor to take action to enforce contract standards and protect the brand image.

A Franchisor Would Most Likely Punish a Franchisee for a Contract