A drawback of franchising is that:
A)it necessitates the development of new business models for every franchise.
B)it provides no opportunities for expansion.
C)it restricts the business to a single geographical location.
D)it deprives the franchisor of absolute control over his or her business.

Question

Quizplus · Accepted Answer

Franchising involves sharing control and decision-making with franchisees, which can potentially lead to disagreements and conflicts if the franchisor is not willing to compromise. Therefore, franchisors have to give up some degree of control over their business, which can be a drawback. The other options are incorrect as franchising typically involves using a standardized business model, provides opportunities for expansion, and allows for multiple franchise locations.

A Drawback of Franchising Is That