Question

Organizations (franchisors) that decide to franchise (franchisors) have _____ expansion costs in opening new outlets accompanied by _____ control compared to owning their own retail outlets.

A greater; greater Correct Answer Incorrect Answer
B greater; reduced Correct Answer Incorrect Answer
C reduced; greater Correct Answer Incorrect Answer
D reduced; reduced Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Compared to owning the retail outlets, franchisors have reduced expansion costs and lose control by franchising.

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