Large franchisors have company lawyers to draft documents,architects to draw plans,and technicians to install and test equipment for franchisees.Franchisees benefit from these ________ that lower costs and provide better franchising results.
A) downstream functions
B) economies of scale
C) supply chain tools
D) marketing strategies
E) branding capabilities

Question

Quizplus · Accepted Answer

Economies of scale refer to the advantages that a company gains due to its size and the ability to spread fixed costs over a larger number of units. In the case of franchisors, their larger size allows them to have access to specialized resources such as lawyers, architects, and technicians that they can then share with their franchisees, lowering costs for the latter and achieving better franchising results overall.

Large Franchisors Have Company Lawyers to Draft Documents,architects to Draw