Which of the following is true of franchising?

Question

Quizplus · Accepted Answer

Franchising is a rapidly growing form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchisee provides market knowledge, capital, and personal involvement in management. The combination of skills permits flexibility in dealing with local market conditions and yet provides the parent firm with a reasonable degree of control. The franchiser can follow through on marketing of the products to the point of final sale. It is an important form of vertical market integration. Potentially, the franchise system provides an effective blending of skill centralization and operational decentralization. Foreign laws and regulations are friendly toward franchising because it tends to foster local ownership, operations, and employment.

Which of the Following Is True of Franchising