One of the Main Drawbacks of Franchising Is That It

question 37

Multiple Choice

One of the main drawbacks of franchising is that it requires a franchisee to:

• A)invest a lot of time and effort in setting up the business.
• B)take sole responsibility for all decisions in the business.
• C)share the profits of the business with the franchiser.
• D)build the brand appeal for the franchise outlet on his or her own.
• E)invest considerable capital in national and local advertising programs.

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Definitions:

Promotional Expenditures

The financial resources spent on marketing and advertising campaigns to boost sales or raise awareness.

Sampled Districts

Selected areas from a larger population studied to infer conclusions about the whole group.

Multiple Regression

A statistical technique used to understand the relationship between one dependent variable and two or more independent variables.

Sales

The activity or business of selling products or services, generating revenue for a company or business venture.