Which of the Following Is a Disadvantage of Franchising

question 99

Multiple Choice

Which of the following is a disadvantage of franchising?

• A) The franchisee seldom receives any support or training from the franchisor about running the business.
• B) The franchisee is unable to attain instant brand-name recognition among customers.
• C) The franchise agreement usually requires the franchisee to follow the franchisor's procedures to the letter.
• D) The franchisee faces funding challenges as bankers are often reluctant to fund franchisees.

---

Definitions:

Capacity

Capacity refers to the maximum amount of work that an organization is capable of completing in a given period, often determined by the limits of available resources, such as manpower, machinery, or physical space.

Patent Search

A thorough investigation conducted to check if an invention or idea has already been patented by someone else.

Existing Patents

Refers to patents that have already been granted by the patent office, protecting previous inventions or discoveries.

Inventions

Novel creations or innovations that result in new products, processes, or technologies, often protected by patents.