Financial stability of franchise. The purchase of a franchise should entail an assessment of the financial stability of the franchisor. A potential franchisee should develop answers to which questions.
A) How many franchises are in the organization?
B) How successful is each member of the franchise organization?
C) Are most of the profits of the franchise a function of fees from the sale of franchises or from royalties based on profits of franchisees?
D) Does the franchisor have management expertise in production, finance, and marketing?
E) All of the answers are correct.
Correct Answer:
Verified
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