When a Franchisee Delivers Inconsistent Quality, It Hurts the Company

question 13

Multiple Choice

When a franchisee delivers inconsistent quality, it hurts the company and the ________.

• A)franchisees
• B)business brokers
• C)licensers
• D)bankers

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Definitions:

Revenue-sharing Contract

An agreement between two or more parties that stipulates the proportion of revenue generated by a business venture to be distributed among the partners.

Consumer Demand

The desire and willingness of buyers to purchase goods and services at various price points.

Vertically Integrated

A company structure where the company owns its supply chain, from raw materials to the sale of the finished product, to control costs and quality.

Expected Profit

The forecasted amount of profit calculated by multiplying potential outcomes by their probabilities of occurrence.