The advantages of franchising as an entry mode are similar to that of:
A)strategic alliances.
B)turnkey projects.
C)licence agreements.
D)contract manufacturing.

Question

Quizplus · Accepted Answer

The advantages of franchising as an entry mode are similar to that of licensing agreements. Both allow the franchisor/licensor to expand globally quickly while maintaining control over their brand and product/service quality. Additionally, both modes involve a low investment of capital and provide a relatively low-risk option for entering new markets. Strategic alliances and contract manufacturing involve more complex partnerships and require significant investment and risk. Turnkey projects involve the complete transfer of knowledge and technology, which may not be suitable for all types of businesses.

The Advantages of Franchising as an Entry Mode Are Similar