Which of the following is characteristic of master franchise arrangements?
A)subfranchises to other independent businesses and thus assumes the role of the local franchisor
B)franchisee provides completely standardized business activities, replicated across diverse markets
C)franchise networks where franchisor provides a lump-sum payment to get started in a foreign market
D)franchise networks that pay fewer royalties to franchisors

Question

Quizplus · Accepted Answer

Master franchise arrangements typically involve a master franchisee who subfranchises to other independent businesses and assumes the role of the local franchisor. This allows the master franchisee to expand the franchise network and oversee franchise operations in a specific geographic region.

Which of the Following Is Characteristic of Master Franchise Arrangements