Which of the following is a disadvantage of licensing and franchising?
A) Little control over marketing
B) High development costs
C) High risk in overseas expansion
D) Creation of a monopoly

Question

Which of the following is a disadvantage of licensing and franchising? 
A) Little control over marketing 
B) High development costs 
C) High risk in overseas expansion 
D) Creation of a monopoly

Quizplus · Accepted Answer

Under licensing and franchising, the franchisor has limited control over the marketing activities of the franchisee, which can result in a lack of coordination and consistent branding. This can ultimately harm the reputation of the franchisor.

Which of the Following Is a Disadvantage of Licensing and Franchising