Which of the Following Is a Disadvantage of Franchising

question 92

Multiple Choice

Which of the following is a disadvantage of franchising?

• A) Franchisors face tariff and nontariff barriers when trying to enter a market.
• B) Franchisors face a loss of control when they sell businesses to franchisees who are thousands of miles away.
• C) Franchisors face power struggles and a lack of leadership when trying to adapt the franchisee's management practices.
• D) Franchisors can eventually become competitors, especially when a licensing agreement includes access to important technology or proprietary business knowledge.

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Definitions:

Financial Abuse

The illegal or unauthorized use of someone's property, money, or assets without their consent, often a form of elder abuse or domestic violence.

Social Cognition

The study of how people process, store, and apply information about other people and social situations.

Deception

The act of misleading or deceiving others through false statements, actions, or by concealing the truth.

Stressful Job

Employment that consistently exposes an individual to high levels of stress, potentially affecting their mental and physical health adversely.