Which of the following is a disadvantage of buying a franchise?

Question

Quizplus · Accepted Answer

Buying a franchise means giving up some degree of creative control and relying heavily on the parent company's financial status. The franchise owner must operate within the parameters and guidelines set by the franchisor, making it difficult to introduce new products or services without approval. Additionally, franchise fees and ongoing royalties can be expensive, making it more costly than starting a new business. However, franchise owners typically receive significant training and support from the parent company. Franchisees are not likely to compete with the franchise company itself since the franchisor is incentivized to support its franchisees. As such, options A, C, and D are all inaccurate.

Which of the Following Is a Disadvantage of Buying a Franchise