What Are Some of the Questions That a Would-Be Franchisor

question 70

Essay

What are some of the questions that a would-be franchisor should ask before using franchising as a mode of entry?

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Definitions:

Working Conditions

The environment, including physical and psychological aspects, in which an individual or staff performs their job duties.

Compensating Differential

The compensating differential is the difference in wages that arises to offset the non-monetary characteristics of different jobs, such as riskiness or unpleasantness.

Wage Disparity

The difference in wages earned by different groups of workers, often due to factors like gender, education, or ethnicity.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the market.