Franchisors yield considerable power in their relationship with franchisees due to their ability to ________.

Question

Quizplus · Accepted Answer

Franchisors have the power to cancel a franchise if any major provision of the franchise agreement is not met, which gives them considerable power over their franchisees. While franchisors may also teach procedures and management skills and develop cooperative marketing programs, these actions do not necessarily give them a significant amount of power over franchisees. Overstating the income potential of franchisees is unethical, but it is not a power that franchisors necessarily possess.

Franchisors Yield Considerable Power in Their Relationship with Franchisees Due