In what way is a franchisee's freedom to run the business greatly reduced?
A) Most franchisors are located near the franchisee.
B) The franchisees are technically employees of the franchisor.
C) The franchisee is bound by the terms of the franchise contract.
D) The franchisee is completely dependent on the franchisor for funding.

Question

Quizplus · Accepted Answer

Franchisees are bound to the terms of the franchise contract, which outlines specific guidelines for how the business should be run, including product offerings, pricing, marketing, and more. Failure to comply with these guidelines can result in penalties, fines, or even termination of the franchise agreement. Therefore, the franchisee's freedom to make independent decisions is greatly reduced.

In What Way Is a Franchisee's Freedom to Run the Business