The Following Questions are linked to this scenario: A major firm is debating whether to convert from a retail chain to a retail franchising form of retail organization. Among its considerations are the advantages and disadvantages of each method in terms of costs, investment, channel control, and competitive impact.
-From the perspective of the franchisee, a major disadvantage to retail franchising is that
A) the time period of a franchise is often limited to 30 years.
B) there may be poor synergy between the lessor and lessee.
C) the overall failure rate for franchises is very high.
D) an operator's decision-making ability is lessened.
Correct Answer:
Verified
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