Franchising Accounts for More Than $1 Trillion of Annual U

question 105

Multiple Choice

Franchising accounts for more than $1 trillion of annual U.S. sales and nearly one-third of all retail transactions. Franchises are distinguished by three characteristics that are: (1) the franchisee pays for the right to be part of the system: (2) the franchisor provides its franchisees with a system for doing business; and (3)

• A) the franchisor receives a percentage of sales from the franchisee for the right to belong.
• B) the franchisor controls all actions of the franchisee including hiring and marketing decisions.
• C) the franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments.
• D) the franchisee has unlimited freedom to change the operation once he/she pays the upfront charges.
• E) the franchisee has the most control over the marketing plan.

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Definitions:

Crying

A natural emotional response involving the shedding of tears in response to an emotional state, pain, or a physical irritation of the eye.

Unfamiliar

Describes something or someone not known or recognized by a person.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the course of a person’s life.

Socio-Emotional

Pertaining to the interplay between social interactions and emotional responses, affecting an individual's development and well-being.