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The Downsides for Franchisees Participating in Franchise Channels Include All

Question 26

Multiple Choice

The downsides for franchisees participating in franchise channels include all of the following except:


A) The obligation to provide a percentage of their gross revenues to the franchisor as royalty payments.
B) If a one member of the franchise system generates negative publicity, all franchisees in the system may suffer.
C) Negative halo effect.
D) Limited independence of the franchisee.
E) Increased regulatory scrutiny.

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