Author Question: Describe at least one advantage and one disadvantage of franchising for the franchisor, and at least ... (Read 59 times)

eruditmonkey@yahoo.com · **on:** Jul 14, 2018

Describe at least one advantage and one disadvantage of franchising for the franchisor, and at least one advantage and disadvantage for the franchisee.

Question 2

The major reason why businesses change from sole proprietorships to other forms of ownership is to
A) gain unlimited liability.
B) avoid unlimited liability.
C) avoid lack of continuity.
D) obtain help and eliminate the problem of too much to do in one day.
E) offer advancement opportunities for employees.

yahahah24021 · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

The advantage of franchising to the franchisor is that franchisors often find that franchisees-as profit-oriented owners-are more motivated than salaried managers to do whatever it takes to maximize the success of their outlets.
The disadvantage of franchising to the franchisor is that franchisors often find that dealing with a large number of semi-independent franchisees can be complex and challenging.

The advantage of franchising to the franchisee is that operating a franchise can be considerably less risky than starting a business from scratch. That's because franchises offer access to a proven business system and product.

The disadvantage of franchising to the franchisee is that participating in a franchise can be costly-franchisees usually pay an initial franchise fee as well as ongoing royalties; in addition, they can be assessed additional fees to cover costs such as national advertising campaigns.

Answer to Question 2

D