Marco is a franchisee with Daggies,a chain of sandwich shops.His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops.Soon afterward,Marco's business deteriorated and he too was forced to close.

Question

Quizplus · Accepted Answer

The coattail effect occurs when the actions or reputation of one or more franchisees affect the success of other franchisees within the same franchise system. In this case, the trouble faced by other Daggies franchisees negatively impacted Marco's business.

Marco Is a Franchisee with Daggies,a Chain of Sandwich Shops