Two Major Challenges of Lodging Franchising Are Avoiding Financial Failure

question 26

Multiple Choice

Two major challenges of lodging franchising are avoiding financial failure by the franchisee and:

• A)decreased use of central reservation systems by guests due to increased availability of internet booking options
• B)up-front fees are too high for potential franchisees
• C)slow growth in the industry
• D)maintaining quality standards

---

Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for financial reporting by publicly traded companies.

Financial Reporting Requirements

Legal or regulatory obligations that entities must follow when presenting their financial information to ensure transparency and accountability.

IAS 1

International Accounting Standard 1, prescribing the basis for presenting general purpose financial statements.

Financial Statements

Formal records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.