Opening and operating a franchise in a different country:
A)Is illegal according to the Clayton Antitrust Act.
B)Is no different than setting up a franchise in the domestic market.
C)May require the owner to adapt to social and cultural differences.
D)Is much less risky than owning a domestically based franchise.

Question

Quizplus · Accepted Answer

Opening and operating a franchise in a different country may require the owner to adapt to social and cultural differences. This is because franchise operations cannot be the same in different countries due to variation in consumer preferences, political situations, legal frameworks, and cultural norms. Therefore, the franchisee must customize the business model to fit the local market, which may involve adjustments to the products or services offered, marketing strategies, pricing policies, and operational procedures. Failure to adapt to these differences can lead to misunderstandings, conflicts, and ultimately, business failure. Therefore, the franchisee must be sensitive to and aware of the cultural nuances of the host country.

Opening and Operating a Franchise in a Different Country