Which of the Following Statements Is TRUE About Franchising

question 5

Multiple Choice

Which of the following statements is TRUE about franchising?

• A)Franchisees enjoy guaranteed minimum annual revenues based on their territory.
• B)Franchisers encourage franchisees to be independent and creative in running their operations.
• C)Franchisees have relatively lower risk than other small business startups.
• D)Franchisers conduct local market research for each of their franchisees.

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Definitions:

Ethical Guidelines

Established standards of conduct that dictate how a person or organization should behave in a professional and moral manner.

Telemarketing Industry

The industry involving the direct marketing of goods or services to potential customers over the telephone, email or through web conferencing.

Direct Selling

A retail channel where salespeople sell products directly to consumers, bypassing traditional retail locations.

Pampered Chef

A direct seller of high-quality kitchen tools and accessories, offering products through in-home cooking demonstrations.