A major firm recently converted from a fully integrated vertical marketing system to business format franchising.In setting price,store hours,and personnel policies,it is important that the franchisor recognize that ________.

Question

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In business format franchising, franchisees are considered as owners rather than employees, and they have considerable freedom in setting their retail strategies, store hours, personnel policies, and pricing. The franchisor provides the brand and the systems, but franchisees are expected to operate their businesses independently. Therefore, treating franchisees as owners rather than employees is crucial for the success of the franchising model.

A Major Firm Recently Converted from a Fully Integrated Vertical