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Which of the following is a disadvantage of franchising? a. It requires the franchisees to create a new business model and plan strategies. b. It results in the franchisor taking all the financial burden of the franchisees. c. It does not provide sufficient incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs. d. It restricts the franchisor from expanding. e. It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.

Respuesta :

Answer:

e. It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.

Explanation:

Indeed, by selling or granting (licensing) the right to use the company's name/brand, or employing the same method of operations to another enterprise (called the franchisee), a franchisor may face disadvantages resulting in loss of complete control.

In other words, the franchisee may begin to feel they could be and should be able to decide how to carry out their operations without help from the franchisor.

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