Question

Which of the following statements is false? a. Franchising is most appropriate in fragmented industries. b. Successful franchising allows transfer of knowledge and skills from the franchisor to the franchisee. c. Franchising provides corporate growth with less risk than do mergers and acquisitions. d. Franchising agreements require more trust between firms than do other cooperative strategies.

Answer 1

Answer: Option (D)

Explanation:

The concept of franchising is mostly based on the concept of marketing that can be taken up by the company or organization as the strategy for the business expansion. Once implemented, the franchisor licenses the  intellectual property, procedures, or the use of their business model, rights and brand in order to sell the branded services and products to the franchisee.