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11 August, 15:25

Brian decided to open a local franchise of the well-known Mc-King Chicken, a fast-food restaurant. Which of the following would be an advantage for Brian? A. Guidance from the franchisor B. Franchise holders paying for their security C. Disagreements increasing D. Contract disputes E. The franchisor maintaining a great deal of control

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  1. 11 August, 15:31
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    A. Guidance from the franchisor

    Explanation:

    Under franchising, the franchisor grants license and transfer its business expertise, unique successful processes and ideas to another business (franchisee), usually located in another country to, carry out franchisor's business in return for a fee.

    Examples of Franchising being, KFC, McDonalds and chain of other fast food restaurants operating across the globe.

    The franchisee i. e the one who avails the license to operate the business of franchisor, gets the benefit of using the already successful expertise and business guidance from the franchisor which otherwise would've required years of operations to develop.

    Also the franchisee benefits from operating under established and renowned brand name of the franchisor.

    So, in the given case, Brian would benefit in the form of, availing regular guidance and instructions from the franchisor.
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