The franchising of fast-food restaurants would be an example of how a private business:

Question

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The franchising of fast-food restaurants allows the private business to overcome market information problems by leveraging the brand name, marketing strategies, and business model of the franchisor, which reduces the information asymmetry between the consumer and the franchisee. The franchisor provides a proven business model, supply chain, and marketing strategies to the franchisee, who in turn, pays a fee and a percentage of their revenue to the franchisor for the right to operate under their trademark and business model. This reduces the risks associated with starting a new business from scratch, such as market research, product development, branding, and advertising. Therefore, the franchising of fast-food restaurants is an example of how private businesses overcome market information problems.

The Franchising of Fast-Food Restaurants Would Be an Example of How