ENTREPRENEURIAL OPERATIONS
QUALITY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Quality issues can arise in franchises because:
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All long term decisions are made by the franchisee
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Lack of training is provided to the franchisor by the franchisees
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Many franchisees do not wish to pay royalties
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Franchisors do not control the day-to-day actions of the franchisees
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Explanation:
Detailed explanation-1: -The franchisor owns the trademark and business model. Upon paying the upfront fee and continuing royalties, the franchisor grants the franchisee the rights to use the trademark and business model.
Detailed explanation-2: -With strong quality controls in place, franchised locations very frequently outperform company-owned and hired manager-run locations. Legal Documentation. Franchisee selection. Documented systems. Training and support. 25-May-2021
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