According to the textbook, from the franchisor's point of view, the primary disadvantage of franchising is that ________.
A) it is a poorly understood form of business ownership
B) an organization allows others to profit from its trademark and business method
C) franchise organizations consistently make less money than alternative forms of business ownership
D) it typically takes longer to grow an organization via franchising than company-owned stores
E) it is not legal in seven states and the District of Columbia

Question

Quizplus · Accepted Answer

The primary disadvantage of franchising from the franchisor's point of view is that it allows others to profit from their trademark and business model. This means that while the franchisee benefits from using the franchisor's established brand, the franchisor is sharing a portion of their profits.

According to the Textbook, from the Franchisor's Point of View