Which of the following is an advantage of franchising?
A) It gives the franchisor the same level of tight control over franchisees as does chaining.
B) It allows the franchisor to earn all the profits made by franchisees.
C) It is beneficial for franchisees because they do not have to face higher capital costs.
D) It helps the franchisees by relieving them of the responsibility of running operations.
E) It can help the franchisor expand his or her business rapidly.

Question

Quizplus · Accepted Answer

Franchising allows the franchisor to expand their business rapidly by leveraging the resources, capital, and local knowledge of franchisees. This helps the franchisor to reach new markets and customers through a network of franchisees without incurring high costs. This, in turn, helps the franchisor earn more profits and increase their market share.

Which of the Following Is an Advantage of Franchising