Domestic Firms Developing a Global Entry Strategy Might Consider Franchising

Domestic firms developing a global entry strategy might consider franchising. Before deciding on franchising as a strategy however, firms must understand the disadvantages. What is a disadvantage of franchising?

A) the franchisor has limited control over the market operations in the foreign country
B) the franchisee must sign a non-compete agreement
C) there are higher tariffs associated with franchise operations
D) franchising is the riskiest way to enter a foreign market
E) franchises are not responsible for the quality of products produced