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.
-A major advantage of a retail franchise to a franchisor in comparison to expanding through a retail chain is that the franchising system

Question

Quizplus · Accepted Answer

A retail franchise allows a franchisor to rapidly develop national market coverage with a minimum of invested capital. This is because the franchisees are responsible for the majority of the investment costs, such as the cost of the store, inventory, and equipment. The franchisor only needs to invest in the development of the franchise system, such as the creation of the brand, the development of the operating procedures, and the training of the franchisees.

The Following Questions Are Linked to This Scenario: a Major