INTRODUCTION TO ENTREPRENEURSHIP
ENTREPRENEURIAL PROCESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a disadvantage of a franchise?
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Easy to start
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Franchise must operate like every other franchise
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Franchisee can get assistance in operating the business
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Franchise can rely on good name and expertise of the parent company
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Explanation:
Detailed explanation-1: -Disadvantages to franchisors include a lack of control over franchisees, reputational risks, and slow growth through franchising compared to mergers and acquisitions. Disadvantages to franchisees include high costs and royalty payments, strict product rules, and other start up challenges.
Detailed explanation-2: -Lack of independence. Franchise businesses typically have a high failure rate. Lack of brand identity. Training is not normally provided by the franchisor.
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