From the franchisor's point of view, which of the following is incorrect regarding franchising?
A) Establishing a franchise system should be approached carefully and deliberately.
B) Franchising is a relatively simple business endeavor.
C) Franchising involves managerially demanding tasks.
D) Over the years a number of fraudulent franchise organizations have come and gone.
E) Franchising is a fairly heavily regulated form of business ownership.

Question

Quizplus · Accepted Answer

Franchising is not a simple business endeavor. It involves managerially demanding tasks such as training and supporting franchisees, ensuring brand consistency and compliance with standards, and continuously updating and improving the franchise system. It also requires significant upfront investment and ongoing fees and royalties to the franchisor. Additionally, franchising is heavily regulated to protect the interests of franchisees and consumers. Therefore, establishing a franchise system should be approached carefully and deliberately, and fraudulent franchise organizations should be avoided.

From the Franchisor's Point of View, Which of the Following