Which of the following is a strength associated with franchising?
A)Reduces marketing, promotional and administration costs
B)Goal conflict does not arise
C)Reduces levels of conflict within the channel, compared to other channel systems
D)Combines the strengths of a large sophisticated marketing-orientated organization with the energy and motivation of a locally owned outlet

Question

Quizplus · Accepted Answer

Franchising combines the strengths of a large sophisticated marketing-orientated organization with the energy and motivation of a locally owned outlet. This allows for the franchisor to benefit from lower costs associated with marketing, promotional and administration costs, while also reducing levels of conflict within the channel compared to other channel systems. Additionally, goal conflict may arise between the franchisor and franchisee, but this can generally be minimized through effective franchise agreements and communication.

Which of the Following Is a Strength Associated with Franchising