One Possible Disadvantage of Becoming a Franchisor Is

question 91

Multiple Choice

One possible disadvantage of becoming a franchisor is:

• A)complying with all the government regulations.
• B)the cost of franchising exceeds the franchise fee.
• C)the cost of screening prospective franchisees.
• D)providing training to new franchisees.

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Definitions:

Borrowing Money

The act of obtaining funds from another party with the promise of repaying the principal along with potential interests.

Shareholder Value Model

A business strategy focused on increasing the returns to shareholders, often prioritizing it above other considerations.

Corporate Reinvestment

The act of a company using its profits to invest back into its own operations, projects, or assets to support growth, improve products or services, and enhance shareholder value.

Company Stock

represents shares of ownership in a corporation, giving holders a claim on part of the company’s assets and earnings.