Questions: Which of the following makes it difficult for franchisors to control the activities of franchisees? Franchisees must pay fees and royalties to the franchisor. Franchisees and franchisors are often separated by geography. Some franchisors have more interest in collecting fees than in investing in franchisees' success. Franchisees may be required to buy supplies and equipment from the franchisor.

Which of the following makes it difficult for franchisors to control the activities of franchisees? Franchisees must pay fees and royalties to the franchisor. Franchisees and franchisors are often separated by geography. Some franchisors have more interest in collecting fees than in investing in franchisees' success. Franchisees may be required to buy supplies and equipment from the franchisor.
Transcript text: Which of the following makes it difficult for franchisors to control the activities of franchisees? Franchisees must pay fees and royalties to the franchisor. Franchisees and franchisors are often separated by geography. Some franchisors have more interest in collecting fees than in investing in franchisees' success. Franchisees may be required to buy supplies and equipment from the franchisor.
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Solution

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The answer is B: Franchisees and franchisors are often separated by geography.

Explanation for each option:

A. Franchisees must pay fees and royalties to the franchisor.
This option is incorrect because paying fees and royalties is a standard part of the franchise agreement and does not inherently make it difficult for franchisors to control franchisees. It is more of a financial obligation rather than a control issue.

B. Franchisees and franchisors are often separated by geography.
This option is correct because geographical separation can make it challenging for franchisors to monitor and control the day-to-day operations of franchisees. Distance can lead to communication barriers and make it harder to ensure that franchisees adhere to the franchisor's standards and practices.

C. Some franchisors have more interest in collecting fees than in investing in franchisees' success.
While this may be true in some cases, it does not directly relate to the difficulty of controlling franchisee activities. It speaks more to the franchisor's priorities rather than a structural challenge in control.

D. Franchisees may be required to buy supplies and equipment from the franchisor.
This option is incorrect because requiring franchisees to purchase supplies and equipment from the franchisor is a method of control, ensuring consistency and quality across the franchise. It does not make it difficult for franchisors to control franchisees; rather, it is a tool used to maintain control.

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