Which of the following is characteristic of master franchise arrangements?
A) subfranchises to other independent businesses and thus assumes the role of the local franchisor
B) The franchisee provides completely standardized business activities, replicated across diverse markets.
C) franchise networks where franchisor provides a lump-sum payment to get started in a foreign market
D) franchise networks that pay fewer royalties to franchisors

Question

Quizplus · Accepted Answer

Master franchise arrangements are characterized by the master franchisee's ability to grant subfranchises to other independent businesses, effectively taking on the role of a local franchisor within a specific territory. This allows for expansion and local adaptation within the framework of the broader franchise brand.

Which of the Following Is Characteristic of Master Franchise Arrangements