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Market Competition Led to the Rise of Franchising in the 1950s.The

Question 91

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Market competition led to the rise of franchising in the 1950s.The franchiser ( the company owning the franchise) gives the franchisee (external entity) the right,and all the know-how to sell or give out services of that company using its image,logos,and publicity methods,in return for a fixed or variable franchise fee .The success of the franchising system is attributed to the following factors EXCEPT:


A) Cost advantage of group affiliation for national advertising and quantity discounts.
B) Easy monitoring of quality.
C) High incentives for franchisees to maximize sales.
D) Decentralization of decision rights to franchisees in running the operation.

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