Question

One possible disadvantage of becoming a franchisor is:

a. complying with all the government regulations.
b. providing training to new franchisees.
c. the cost of franchising exceeds the franchise fee.
d. the cost of screening prospective franchisees.

Answer 1

The answer is letter c, the cost of franchising exceeds the franchising fee. It is because when an individual becomes a franchisor, the person would likely expect to pay fees in which the costs may exceed or may be higher than the individual could expect.