According to the Textbook, the Main Disadvantage of Buying a Franchise

question 65

Multiple Choice

According to the textbook, the main disadvantage of buying a franchise is ________.

• A) franchise organizations typically grow slower than non-franchise organizations in the same industry
• B) franchisors typically provide poor levels of support
• C) the cost involved
• D) the service sector of the U.S. economy is waning in importance
• E) franchising is waning in its popularity

---

Definitions:

Reserve Requirements

Criteria set by central banks for the minimal amount of reserves that must be kept by banks against the deposits they hold.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Medieval Times

A historical period in Europe spanning roughly from the 5th to the late 15th century, characterized by feudalism, manorialism, and the prevalence of knights and castles.

Goldsmiths' Safes

traditionally were used by goldsmiths in medieval times to store gold and valuable items, marking an early form of banking.