According to the Textbook, from the Franchisor's Point of View

question 53

Multiple Choice

According to the textbook, from the franchisor's point of view, the primary disadvantage of franchising is that ________.

• A) it is a poorly understood form of business ownership
• B) an organization allows others to profit from its trademark and business method
• C) franchise organizations consistently make less money than alternative forms of business ownership
• D) it typically takes longer to grow an organization via franchising than company-owned stores
• E) it is not legal in seven states and the District of Columbia

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Definitions:

Embezzling Funds

Illegally taking or misappropriating money or assets entrusted to one's care, typically in a workplace or official capacity.

Defamation

A false communication about someone that injures their reputation or good name.

Libel

A form of defamation expressed through publication or broadcast, involving false statements that damage a person's reputation.

Invasion of Privacy

Unauthorized intrusion into the personal life of another without just cause, which can lead to legal action.