Which of the Following Is NOT True About Franchising

question 58

Multiple Choice

Which of the following is NOT true about franchising?

• A) It is the practice in which the parent firm is obligated to provide specialized equipment and/or service,and sometimes to fund some startup costs,to franchisees in return for an annual fee.
• B) Franchisees receive technical assistance from the parent company,along with customer-service training.
• C) In franchising,the parent firm assumes relatively less risk than with licensing.
• D) The parent company's objective is to make sure that when a customer visits a franchise in any country,the quality of products and services provided are similar.
• E) Franchising typically leads to the penetration of international markets without significant capital investment abroad by a parent company.