One of the limitations of franchising is that it:
A)provides less opportunities for additional profits through supplies sold to franchisees.
B)depends heavily on franchisees for financial success without full control of them.
C)requires many company managers and employees,thus increasing costs.
D)prevents expansion requiring more capital,resulting in slower market penetration.

Question

Quizplus · Accepted Answer

Franchising involves allowing independent entrepreneurs (franchisees) to use a company's trademark, products, and business model to open and run their own businesses. While franchisees contribute to the franchisor's revenue, they are also responsible for their own financial success. Therefore, a limitation of franchising is that it heavily depends on the franchisees' performance without full control over them.

One of the Limitations of Franchising Is That It