Which of the following is an advantage of franchising to the franchisor?
A) It is easier to maintain control over a franchisee.
B) It is a low-risk, low-cost entry strategy.
C) There is seldom any risk of franchisees becoming future competitors.
D) There is seldom a requirement for the franchisor to become familiar with foreign laws and regulations.

Question

Quizplus · Accepted Answer

Franchising allows the franchisor to expand their business by leveraging the franchisees' capital investment, thus reducing the financial risk and cost associated with opening new locations themselves.

Which of the Following Is an Advantage of Franchising to the Franchisor