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Company X,a Franchisor,used Franchisees to Build the Company X Brand

Question 27

Multiple Choice

Company X,a franchisor,used franchisees to build the Company X brand and the company system.Now that Company X is large and successful,it is using pricing tactics and restrictive contract terms to force franchisees to sell their franchises back to Company X.Which term best describes the actions of Company X?


A) free riding
B) negligent franchising
C) opportunistic licensing
D) redirection of ownership
E) organizational consolidation

Correct Answer:

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