Which of the Following Is NOT True About Franchising

question 58

Multiple Choice

Which of the following is NOT true about franchising?

• A) It is the practice in which the parent firm is obligated to provide specialized equipment and/or service,and sometimes to fund some startup costs,to franchisees in return for an annual fee.
• B) Franchisees receive technical assistance from the parent company,along with customer-service training.
• C) In franchising,the parent firm assumes relatively less risk than with licensing.
• D) The parent company's objective is to make sure that when a customer visits a franchise in any country,the quality of products and services provided are similar.
• E) Franchising typically leads to the penetration of international markets without significant capital investment abroad by a parent company.

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Definitions:

Leadership

The act of guiding or directing a group, organization, or country towards achieving a set of goals or fulfilling a mission, often requires vision, planning, and the ability to make strategic decisions.

Omaha Platform

The political agenda adopted by the Populist Party during its convention in Omaha in 1892, advocating for free silver, a graduated income tax, postal savings, regulation of railroads, and direct election of Senators.

Demands

Requests or calls for something to be given or done, often with a sense of urgency or entitlement.

Global Context

The broader, international circumstances or environment in which events, decisions, or actions take place, emphasizing interconnectedness and interdependence worldwide.