Which of the following is a disadvantage of franchising?
A) There is a large amount of risk for the franchisor.
B) The franchisor has to put in a large amount of capital.
C) The cost of development is high.
D) There is a high amount of political risk.
E) There is a possibility of losing quality control.
E) There is a possibility of losing quality control.
Explanation: The most significant disadvantage of franchising concerns quality control. To make matters worse, the geographic distance between the franchisor and its overseas franchisees makes poor quality difficult to detect.
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A) perspective B) prospective
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