Asked by Elisheba Stanley on Sep 24, 2024
Verified
Relative to a fixed franchise fee,sharing contacts in franchising
A) Can decrease shirking
B) Can increase shirking
C) Always decreases shirking
D) None of the above
Franchise Fee
An upfront payment made by a franchisee to a franchisor for the rights to use the franchisor's brand and business model.
Shirking
The act of avoiding work or responsibilities, often covertly, within an employment context.
Franchising
A business model allowing individuals or entities to operate a business under the name and system of an established brand in exchange for a fee and ongoing royalties.
- Study the notions of risk division and neglect in franchise connections.
Verified Answer
MS
Marilyn Sandy1 day ago
Final Answer :
B
Explanation :
Sharing contracts in franchising can increase shirking because the franchisee might not work as hard if they know they have to share a significant portion of their revenues or profits with the franchisor, compared to a situation where they pay a fixed franchise fee and keep all additional profits.
Learning Objectives
- Study the notions of risk division and neglect in franchise connections.