which of the following is a drawback of buying a franchise? course hero

Which of the following is a drawback of buying a franchise?

The main disadvantage of buying a franchise is that you must conform to the rules and guidelines of the franchisor. Some franchisors exert a degree of control that you, as a supposedly independent business owner, may find excruciating.Dec 11, 2021

Which of the following is a drawback to the franchisee in the franchise relationship?

Disadvantages to franchisees include high costs and royalty payments, strict product rules, and other start up challenges. Entering into an agreement with an interested franchisor is important.

Which of the following is a disadvantage of owning a franchise quizlet?

Which of the following is a disadvantage of franchising? The franchisee has no flexibility as it is required to follow the franchisor's procedures to the letter. A corporation is a form of business ownership in which: ​a business is considered a legal entity that is separate from its owners.

What statement about buying a franchise is most accurate?

The correct answer is B) before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, their situation, and the...

What are the disadvantages of a franchisee?

Disadvantages to franchisees include high costs and royalty payments, strict product rules, lack of support from uninterested franchisors, lack of flexibility in where to locate and how to trade, and other start-up challenges.Aug 10, 2021

What are drawbacks to being a franchisee?

Disadvantages of franchising for the franchiseeRestricting regulations. ... Initial cost. ... Ongoing investment. ... Potential for conflict. ... Lack of financial privacy.

What is a disadvantage of starting a business through a franchise agreement quizlet?

> More expensive startup. Constant fee and royalty payments. >

Which of the following is a disadvantage of a licensing agreement?

The disadvantages of licensing can be viewed from two perspectives: licensor and licensee. Disadvantages to the licensor include: The licensor having loss of control of their intellectual property. The licensor having to depend on the skills, abilities, and resources of the licensee to generate revenues.

What disadvantage do partners and franchisees share?

The disadvantages of partnership include the fact that each owner or member is exposed to unlimited liability for their activities within the business, transferability can be difficult to achieve, and a partnership is unstable as it can automatically dissolve when just one partner no longer wants to participate in the ...

Which of the following statements about buying a franchise is most accurate quizlet?

Which of the following statements about buying a franchise is most accurate? Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.

What is normally considered a disadvantage of the corporate form of business?

Which of the following is normally considered a disadvantage of the corporate form of business? Double taxation of earnings. A major advantage of S corporations is that they: Avoid the problem of double taxation associated with conventional corporations.

What are advantages of franchises?

Advantages of buying a franchise Franchises have a higher rate of success than start-up businesses. You may find it easier to secure finance for a franchise. It may cost less to buy a franchise than start your own business of the same type.Sep 14, 2020