In franchising, which of the following is not a benefit that the franchiser gains?
A)The franchiser can gain more rapid product distribution.
B)The franchiser can acquire capital more quickly for expanding production.
C)The franchiser gains more control over how the franchisees operate the establishments.
D)The franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads to higher sales and higher royalties.
E)All of these are benefits for the franchiser.

Question

Quizplus · Accepted Answer

The franchiser does not gain more control over how the franchisees operate the establishments. In fact, one of the key features of franchising is that the franchisees operate their establishments independently, while maintaining consistency with the franchiser's brand and operating system. The franchiser provides support and guidance to the franchisees, but the franchisees are ultimately responsible for their own success.

In Franchising, Which of the Following Is Not a Benefit