Asked by Walter Enrique on May 06, 2024
Verified
What are the pros and cons of a franchising agreement for global expansion?
Franchising Agreement
A legal contract in which a well-established business grants another party the right to operate under its brand and sell its products or services.
Global Expansion
The process of a business extending its operations and influence to multiple countries beyond its home country.
- Evaluate the advantages and disadvantages of worldwide franchising.
Verified Answer
KM
Katie MurphyMay 12, 2024
Final Answer :
A franchise contract allows the franchisee to operate a retail product or service business using the name and business format developed and supported by the franchisor. However, the firm has limited control over the market operations and must follow strict guidelines set forth by the franchisor.
Learning Objectives
- Evaluate the advantages and disadvantages of worldwide franchising.
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