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

---

Definitions:

Delusions

False beliefs held with strong conviction despite superior evidence to the contrary, often occurring as a symptom of psychiatric disorders.

Avoidance

A coping mechanism involving steering clear of stressful or anxiety-inducing situations or stimuli.

Fear

An emotion that occurs in response to a real or perceived current threat.

Apprehension

A feeling of anxiety or fear that something bad or unpleasant will happen.