Asked by Vritra Official on Jun 05, 2024

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What are the risks associated with global franchising?

Global Franchising

A business strategy that involves a company licensing its business model and brand to operators in other countries.

  • Assess the risks and benefits of global franchising.
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KA
Khaled AshrafJun 09, 2024
Final Answer :
The franchisor has limited control over the market operations in the foreign country, its potential profit is reduced because it must be split with the franchisee, and, once the franchise is established, there is always the threat that the franchisee will break away and operate as a competitor under a different name.