Which of the Following Most Clearly Indicates Why the Franchiser

Multiple Choice

Which of the following most clearly indicates why the franchiser of a product has a strong incentive to monitor the quality of the product among all of the franchised sellers?

A) The franchiser has a monopoly on the sale of products in his industry.
B) If quality is not maintained, the franchiser will be limited in his ability to sell other franchises and collect franchise fees.
C) If quality is not maintained, the government will prohibit future sales of the franchises.
D) Franchisers do not gain financially by maintaining quality, but they generally maintain quality anyway because they are consumers as well as producers.