Leanne, a franchisee, runs a chain of small restaurants with a well-known name. Due to her hard work and people skills, her locations are doing quite well. She has noticed that several other franchisees in the same franchise system have let their restaurants deteriorate, especially in terms of lack of upgrades. Leanne should be concerned about this trend, since it eventually could affect her own business.

Question

Quizplus · Accepted Answer

The actions of less successful franchisees can hurt the success of others in the same franchise. This is known as the coattail effect.

Leanne, a Franchisee, Runs a Chain of Small Restaurants with a Well-Known