Which of the Following Is a Disadvantage of Franchising

question 35

Multiple Choice

Which of the following is a disadvantage of franchising?

• A) It restricts the franchisor from expanding.
• B) It results in the franchisor taking all the financial burden of the franchisees.
• C) It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.
• D) It does not provide enough incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs.
• E) It requires the franchisees to create a new business model and plan strategies.

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Definitions:

Peanut Allergies

An immune system reaction that occurs soon after exposure to peanuts, causing a range of symptoms from mild irritation to severe anaphylaxis.

Principle of Rights Theory

An ethical framework stating that actions are right if they respect the rights of individuals.

Affects the Rights

Impacts or alters the legal entitlements and privileges of an individual or group.

Duty-Based Ethical Standards

Ethical principles that emphasize the obligations and duties to act in morally correct ways, regardless of the outcomes.