A franchisor does not benefit from the franchisee's incentive to receive a return on their capital investments.

Question

Quizplus · Accepted Answer

A franchisee's capital investment in the franchise ultimately benefits the franchisor because it helps to grow and expand the franchise system. A successful franchisee who earns a return on their investment is also more likely to renew their franchise agreement and recommend the franchise to others, which benefits the franchisor.

A Franchisor Does Not Benefit from the Franchisee's Incentive to Receive