Franchising Quiz

What is a common requirement for a franchisee in an international franchising agreement?

What is a primary advantage of international franchising for the franchisor?

• Direct ownership of all foreign outlets

• Reduced need for local market research

• Expansion with lower financial risk

• Full control over daily operations

Which of the following is a key difference between franchising and licensing in international business?

• Franchising involves no transfer of intellectual property

• Licensing requires more control over business operations

• Franchising typically includes a complete business model and ongoing support

• Licensing always requires higher initial investment

Why might a company choose franchising over wholly owned subsidiaries for international expansion?

• To retain complete operational control

• To reduce the complexity of international logistics

• To leverage local franchisee knowledge and investment

• To ensure direct oversight of all employees

Which of the following is a potential risk for a franchisor in international franchising?

• Increased direct investment

• Loss of control over brand reputation

• High local employee turnover

• Complex supply chain logistics