Which of the following is a disadvantage of franchising?
A)There is a large amount of risk for the franchisor.
B)The franchisor has to put in a large amount of capital.
C)The cost of development is high.
D)There is a high amount of political risk.
E)There is a possibility of losing quality control.

Question

Quizplus · Accepted Answer

One major disadvantage of franchising is the possibility of losing quality control as the franchisee may not operate or manage the business in the same way as intended by the franchisor. This can lead to damage to the brand image and reputation of the franchisor. The other options listed are not necessarily disadvantages of franchising.

Which of the Following Is a Disadvantage of Franchising