The advantages of using a franchising strategy to pursue opportunities in foreign markets include
A)franchisees bear most of the costs and risks of establishing foreign locations,and the franchisor is required to expend only the resources to recruit,train,and support foreign franchisees.
B)its being particularly well suited to the global expansion efforts of companies with multicountry strategies.
C)the ability to build multiple profit sanctuaries.
D)its being particularly well suited to companies that employ cross-market subsidization.
E)its being particularly well suited to the global expansion efforts of manufacturers.

Question

Quizplus · Accepted Answer

One of the greatest advantages of franchising is that the franchisor can expand their business without having to bear the costs and risks themselves, as the franchisee assumes this responsibility. This is particularly appealing when entering foreign markets, where the franchisor may not be familiar with local regulations, customs, and practices. This allows the franchisor to expand more quickly and with less investment.

The Advantages of Using a Franchising Strategy to Pursue Opportunities