Regarding the advantages and disadvantages of franchising, the international marketer knows that
A)in international markets, the franchisor experiences greater risk than if it opened its own company store.
B)through franchising agreements, the franchisor reduces the possibility of competition.
C)franchising is a method that allows for very rapid market penetration.
D)All of the above are true.

Question

Quizplus · Accepted Answer

The franchisor experiences less risk, and a higher level of control of operations and offerings to the target market. Franchising is also a method that allows for very rapid market penetration. A disadvantage of franchising is that it can create future competitors, who know the ins and outs of the franchise's operations.

Regarding the Advantages and Disadvantages of Franchising, the International Marketer