Which of the following is an advantage of franchising?
A) It gives the franchisor the same level of tight control over franchisees as does chaining.
B) It allows the franchisor to earn all of the profits made by franchisees.
C) It is beneficial for franchisees because they do not have to face higher capital costs.
D) It helps the franchisees by relieving them of the responsibility of running operations.
E) It can help the franchisor expand his or her business rapidly.

Question

Quizplus · Accepted Answer

Franchising can help a franchisor expand their business rapidly as they are able to leverage the efforts and investments of their franchisees. Franchisees are responsible for opening new locations and investing in their own operations, which can lead to faster growth for the franchisor. It also allows for the franchisor to benefit from the expertise, local knowledge, and entrepreneurial energy of their franchisees, while minimizing their own costs and risks.

Which of the Following Is an Advantage of Franchising