In Franchising, Which of the Following Is Not a Benefit

question 104

Multiple Choice

In franchising, which of the following is not a benefit that the franchiser gains?

• A)The franchiser can gain more rapid product distribution.
• B)The franchiser can acquire capital more quickly for expanding production.
• C)The franchiser gains more control over how the franchisees operate the establishments.
• D)The franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads to higher sales and higher royalties.
• E)All of these are benefits for the franchiser.

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Definitions:

Supplier Goodwill

The positive reputation and relationship a supplier builds over time, which can lead to preferential treatment, better terms, or ongoing business opportunities.

Supply Manager

A professional responsible for managing and overseeing the procurement of goods and services in an organization, including supplier selection and contract negotiation.

Best Estimate

An informed, accurate guess based on available data, used in various contexts to project outcomes or make decisions.

Weighted Point Evaluation System

A decision-making tool that helps businesses evaluate various choices based on a series of criteria, each of which is assigned a different weight based on its importance.