Which of the following is TRUE about franchising as an entry strategy?
A) It provides firms with minimum control over foreign operations.
B) It is an ownership-based international business activity.
C) It provides ownership with greater control but also typically restricts a firm's ability to expand more rapidly abroad.
D) It is typically characterized as an unstable, short-term entry strategy.

Question

Quizplus · Accepted Answer

Franchising allows the franchisor to expand more rapidly by leveraging the franchisees' investment but also imposes certain restrictions to ensure brand consistency and quality, which can limit the firm's direct control over each operation. However, it does offer a balance of control through the franchise agreement.

Which of the Following Is TRUE About Franchising as an Entry