Franchising Accounts for More Than $1 Trillion of Annual U

Multiple Choice

Franchising accounts for more than $1 trillion of annual U.S. sales and nearly one-third of all retail transactions. Franchises are distinguished by three characteristics that are: (1) the franchisee pays for the right to be part of the system: (2) the franchisor provides its franchisees with a system for doing business; and (3)

A) the franchisor receives a percentage of sales from the franchisee for the right to belong.
B) the franchisor controls all actions of the franchisee including hiring and marketing decisions.
C) the franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments.
D) the franchisee has unlimited freedom to change the operation once he/she pays the upfront charges.
E) the franchisee has the most control over the marketing plan.