Asked by Austin Deaver on Jun 19, 2024
Verified
Which of the following is one of the commonly reported disadvantages of franchising?
A) Lack of management training and assistance
B) Decentralized buying power
C) Low rate of success
D) Restrictions on purchasing
E) Lack of financial assistance
Franchising
Franchising is a method of business expansion where a company (franchisor) grants the right to an individual or group (franchisee) to do business using the franchisor's brand and operational model.
- Master the design, profitabilities, and disadvantages of franchising for diminutive enterprises.
Verified Answer
AE
Angeli ExcellentJun 23, 2024
Final Answer :
D
Explanation :
Franchising often comes with restrictions on purchasing, where franchisees must buy supplies, products, or inventory only from the franchisor or approved vendors. This can limit the ability to seek out lower-cost or higher-quality alternatives.
Learning Objectives
- Master the design, profitabilities, and disadvantages of franchising for diminutive enterprises.
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