Question

Which of the following is a disadvantage of franchising for a franchisee? The Dunning-Kruger effect The endowment effect The false-consensus effect The negative halo effect

Answer 1

Option D

The negative halo effect is a disadvantage of franchising for a franchisee

Explanation:

The halo effect is a kind of cognitive racism in which our overall hypothesis of a person impacts how we think and speculate about his or her personality. Thoughts of a particular characteristic can transfer over to how personas look at other features of that personality.

If a franchisee does not exist up to the excellence criteria of the franchisor this can have a contrary reputational impact not simply on the franchisee, but the wider credit of the franchisor as well. Thus, there is a peril in empowering others not undeviatingly related to the business to practice the business name and logo.