Which of the following is NOT true regarding franchising?Group of answer choicesFranchising is not a very effective entry mode for the service industryFranchising involves utilizing a license to gain access to knowhow, technology, and brand name in return for royaltiesFranchising may produce a viable competitor in the franchiseeAll of the above are true. PreviousNext
Question
Which of the following is NOT true regarding franchising?Group of answer choicesFranchising is not a very effective entry mode for the service industryFranchising involves utilizing a license to gain access to knowhow, technology, and brand name in return for royaltiesFranchising may produce a viable competitor in the franchiseeAll of the above are true. PreviousNext
Solution
The statement that is NOT true regarding franchising is: "Franchising is not a very effective entry mode for the service industry". In fact, franchising is often a very effective entry mode for the service industry. Businesses in sectors such as fast food, hotels, and fitness often use franchising as a growth strategy.
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