Asked by Karren Shaalini Gunalan on Jul 05, 2024
Verified
Which of the following statements is true of franchisees?
A) They do not face any restrictions on purchasing.
B) They receive a monthly or annual fee from the franchisers.
C) They have unrestricted freedom in business decision.
D) They have to establish their own brand-name appeal from scratch.
E) They have access to standardized quality of goods and services.
Franchisers
Businesses that grant licenses to individuals or companies allowing them to operate under the franchiser's brand and sell its goods or services.
- Know the structure, benefits, and limitations of franchising for small businesses.
Verified Answer
TL
Terry LewisJul 11, 2024
Final Answer :
E
Explanation :
Franchisees benefit from the franchiser's established brand-name appeal and standardized quality of goods and services, which helps ensure consistency across all locations. This is a key advantage of being part of a franchise system.
Learning Objectives
- Know the structure, benefits, and limitations of franchising for small businesses.
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