A Number of Major Questions Should Be Addressed by a Potential

question 4

Multiple Choice

A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising.Which one of the following is not a major question at the onset?

• A)do I have a prototype store or unit that can be replicated?
• B)can my product/service meet the test of distance?
• C)should I have right of first-refusal on site selection?
• D)what skills will be needed by a franchisee to run my business successfully?

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Definitions:

Endowment Effect

A cognitive bias in which individuals value an owned object higher than its market value, simply because they own it.

Affect Heuristic

A mental shortcut that influences decision-making based on emotions and feelings.

Street Smarts

Practical knowledge and experience in dealing with everyday situations or challenges, often contrasted with book learning.

Business Decisions

The choices made by the management of a company regarding strategic planning, operations, and policies.