Respuesta :
Option E is correct. The management regulation is not an advantage of franchising.
Further Explanation:
Franchise: Franchising is a form of business where the franchisor (who has an established brand name) gives the right to the franchisee to use its trademark, products, services, and also provide training and assistance for operating the business. The advantages of the franchising are:
• Marketing and Management assistance: The training is provided by the franchisor to the franchisee on how to carry on the business and also provide marketing assistance.
• Personal ownership: The franchisee is the owner of the business in the territory of which is he /she purchased the rights. He pays the royalty for the right purchased
• Nationally recognized name: The franchisor's business usually has a global presence, so it is nationally recognized.
• Financial advice and assistance: The franchisor provides financial assistance and advice to the franchisee so that the business can maintain its brand name.
• Lower failure rates: Since the franchise has a global presence and brand position, so chance of failure is lower.
Therefore, the management regulation is not a benefit of franchising because the franchisee cannot change the way management is being done, although the business is owned by the franchisee.
Learn more:
1. Learn more about the management resource activity
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3. Learn more about customer relationship management
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Answer details:
Grade: High School
Subject: Business
Chapter: International business
Keywords: Cody Barnett, Sonic franchise, management assistance, personal ownership, lower failure rate, management regulation, nationally recognized name.
Management regulation is not an advantage of franchising
When a larger company gives another firm a license or a permit to use their intellectual property such as brand name, trademark, designs, and others, it is a common practice called franchising
Further Explanation
It is simply an agreement between two business partners, whereby a manufacturer allowed another firm or individual, the rights to make use of its brand name, trademark, and designs
In franchising, the company that gives a license to another firm is known as the franchiser whiles the entity or individual that is allowed to use the company intellectual property is known as the franchisee
The franchisee obtains a franchise from the franchiser by paying a certain amount of money as a startup fee and the franchiser on its part also provides necessary training and guidance to the franchisee regularly. One of the common practices among the larger company is franchising as it promotes business expansion.
Some of the advantages of franchising include
- It widens the business network of the franchiser
- It enables franchisers to expands its distribution chain within a short period
- It gives feedback to franchisers concerning how popular their products are performing in the market, what the customers want and many more
Some characteristics of franchising include
- Policies
- Training
- Royalty
- Limited period
- License
LEARN MORE:
- Management regulation https://brainly.com/question/11237752
- What are the advantages and disadvantages of investing in a franchise for both the franchisee and franchisor https://brainly.com/question/1780353
KEYWORDS:
- franchising
- advantage
- franchisee
- management regulation
- agreement
