Which of the following is a disadvantage of franchising?
A)The franchiser has to bear development costs and risks associated with foreign expansion.
B)Franchising leads to undesirable results for service firms.
C)It is difficult to maintain quality control across foreign franchisees that are distant from the franchiser.
D)The franchiser has no long-term interests in the foreign country.
E)It forces a franchiser to take out profits from one country to support competitive attacks in another.

Question

Quizplus · Accepted Answer

Maintaining quality control across distant franchisees can be difficult, as the franchiser may not have direct control over operations in different countries. This can lead to inconsistent quality and negatively impact the brand image. The other options are either not necessarily true or can be seen as advantages in certain contexts.

Which of the Following Is a Disadvantage of Franchising