What Is a Disadvantage of Franchising to the Franchisee

question 97

Multiple Choice

What is a disadvantage of franchising to the franchisee?

• A) national name recognition
• B) restricted operating freedom
• C) assistance in site location
• D) ongoing management training program

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Definitions:

Long-run Equilibrium

A state in a market where all firms are making normal profits, with no incentives for entry or exit, and all factors of production are variable.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Long Run

A period of time in which all factors of production and costs are variable, allowing companies to adjust to market changes.

Perfectly Competitive

A market structure characterized by infinite buyers and sellers, no barriers to entry, and perfect information, resulting in an efficient market.