A disadvantage of franchising to the franchisee is: Group of answer choices national name recognition ongoing management training program standardized operating procedures restricted operating freedom assistance in site location

restricted operating freedom

Explanation:

Franchise is a license consisting of a contractual arrangement between a parent company and another, that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.

One of the main advantages of a franchise is that, franchisers such as McDonald do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee.

Hence, a disadvantage of franchising to the franchisee is restricted operating freedom.

Additionally, a product distribution franchise can be defined as a supplier-dealer business relationship in which a dealer (franchisee) is granted a license by the manufacturer (franchisor) to sell and distribute their products.

In this type of franchise, the dealer (franchisee) is only granted the license to use just the logos and trademarks of the manufacturer (franchisor) but not the framework (system) for the establishment and operations of the business.

Some examples of a product distribution franchise is Fords motors, Coca-Cola, mobile homes, Guiness etc.

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