Declan plans to open up three Pizza Pals franchises in the greater Phoenix area. He tells you that he plans to negotiate with the franchisor to get rid of the giant Preston the Pizza that sits on the roof of all Pizza Pal restaurants. Declan is likely to learn that
A) the parent company will give him a start-up cost break for the same amount that it would have to pay for three of these signs.
B) he is making a smart decision because it is not the sign that will bring customers to his pizza joint. It is the wide selection of toppings and six different crust offerings that keep the customers coming in.
C) it is nonnegotiable due to company rules.
D) his failure rate will not increase or decrease because franchises traditionally have low failure rates.

Question

Quizplus · Accepted Answer

Franchisors quite often require franchisees to adhere to strict rules when it comes to the design of their buildings, the signs that they use, and other mandates. The proven business model usually has centralized regulations that franchisees must follow.

Declan Plans to Open Up Three Pizza Pals Franchises in the Greater