Which of the following is a disadvantage of franchising? A)It restricts the franchisor from expanding. B)It results in the franchisor taking all the financial burden of the franchisees. C)It results in the delegation of authority to franchisees and thus, the franchisor may not enjoy complete control. D)It does not provide sufficient incentive to the franchisees to run operations effectively as the franchisees are ^not^{entrepreneurs.} E)It requires the franchisees to create a new business model and plan strategies.

Question

Quizplus · Accepted Answer

Franchising involves delegation of authority to the franchisees, which may lead to a loss of control by the franchisor. This can be seen as a disadvantage as the franchisor may not have complete control over how the franchisees run their businesses, which may affect the overall brand image and reputation. However, this can also be seen as an advantage as it allows for local expertise and flexibility in responding to market conditions. The other options listed are not necessarily disadvantages of franchising.

Which of the Following Is a Disadvantage of Franchising