Which of the following is a disadvantage of franchising?
A)The franchisee seldom receives any support or training from the franchisor about running the business.
B)The franchisee faces the task of establishing brand recognition among customers.
C)The franchisee has no flexibility as it is required to follow the franchisor's procedures to the letter.
D)The franchisee faces funding challenges as bankers are often reluctant to fund franchisees.

Question

Quizplus · Accepted Answer

The franchisee is required to follow the franchisor's procedures and has limited flexibility to make independent decisions, which can be a disadvantage for some entrepreneurs who prefer more control over their business. A, B, and D are not accurate disadvantages of franchising as most franchisors offer training, support, and established brand recognition, and there are financing options available for franchisees.

Which of the Following Is a Disadvantage of Franchising