Domestic Firms Developing a Global Entry Strategy Might Consider Franchising;

Domestic firms developing a global entry strategy might consider franchising; however,the disadvantages need to be considered.All of the following are disadvantages of franchising except

A) The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically.
B) The franchisee might end up becoming a competitor.
C) Franchising limits profit potential, since profits will have to be split with the franchisee.
D) Franchising is the riskiest way to enter a foreign market.
E) All of these are disadvantages a firm must consider.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free