All of the Following Are Advantages to the Franchisor Except

question 68

Multiple Choice

All of the following are advantages to the franchisor except

• A) fast and selective distribution of products.
• B) no involvement in national advertising campaigns.
• C) assurance of how the outlets will be maintained and operated.
• D) gains from the franchisee's high motivation.
• E) a freeing up of capital for expansion of goods and services.

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Definitions:

First-Mover Advantage

In game theory, the benefit obtained by the party that moves first in a sequential game. A situation that occurs in a sequential game if the player who gets to move first has an advantage in terms of final outcomes over the player(s) who move subsequently.

Simultaneous Game

A strategic interaction (game) between two or more parties (players) in which every player moves (makes a decision) at the same time.

Advertising

A form of marketing communication used to promote or sell a product, service, or idea through various media vehicles.

Brand Loyalty

A consumer's preference to buy a particular brand's product over competitors, often due to a perceived superiority or emotional connection to the brand.