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प्रश्न
State two disadvantages of franchising?
उत्तर
- Franchising fees: The initial franchising fee and the subsequent renewal fee can be very high in the case of successful businesses. From the franchisee’s point of view, this may be a deterrent.
- Fixed royalty payment: The franchisee has to make payment of royalty to the franchiser on a regular basis. This considerably reduces the income of the franchisee.
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संबंधित प्रश्न
Who is a franchisor?
What is franchising?
Explain in brief the three ways in which an organisation can expand externally.
Enumerate the importance of franchising.
Explain the types of franchising.
An organization carrying out activities to move goods from producer to consumer is ______.
What are the types of franchising?
Enumerate the characteristics of franchising.
Assertion (A): In franchising there is usually a much higher likelihood of success when an individual opens a franchise as opposed to a mom-and-pop business.
Reason (R): It runs on a proven business formula that is already in place.
Franchising is advantageous for both franchisor and franchisee. Explain five advantages of franchising for the franchisee.
