The most significant disadvantage of franchising concerns
A) The very low level of profit potential.
B) The loss of control over technology that may affect an organization's ability to sustain a competitive advantage.
C) High development costs related to a higher level of risk in worldwide operations.
D) Loss of identification with local markets.
E) Quality control.

Question

Quizplus · Accepted Answer

If overseas franchisees are less concerned about quality than they should be, the impact can go beyond lost sales in the local market to a decline in the company's reputation worldwide. To make matters worse, the geographic distance between the franchisor and its overseas franchisees makes poor quality difficult to detect.

The Most Significant Disadvantage of Franchising Concerns