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:

Liability

A legal obligation or debt that an entity is required to pay to another.

Commerce Bank

A financial institution providing banking services, such as deposits, loans, and other financial products to individuals and businesses.

Assignee

An individual or entity to whom rights or interests are transferred by another, known as the assignor.

Notice

Formal communication or announcement necessarily made to inform a party of certain legal processes or actions.