The Primary Advantage of Franchising Is the Complete Control the Franchisee

question 11

True/False

The primary advantage of franchising is the complete control the franchisee has over the business.

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Definitions:

Investment Center

A business unit or division that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment relative to its cost.

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Controllable Fixed Costs

Controllable fixed costs are expenses that a company has some degree of control over in the short term, despite them generally being fixed for a certain period.