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Which of the following is NOT true about franchising?
a. It is the practice in which the parent firm is obligated to provide specialized equipment and/or service, and sometimes to fund some startup costs, to franchisees in return for an annual fee.
b. Franchisees receive technical assistance from the parent company, along with customer-service training.
c. In franchising, the parent firm assumes relatively less risk than with licensing.
d. The parent company’s objective is to make sure that when a customer visits a franchise in any country, the quality of products and services provided are similar.
e. Franchising typically leads to the penetration of international markets without significant capital investment abroad by a parent company.

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agustinsr99

Answer: The statement " c. In franchising, the parent firm assumes relatively less risk than with licensing. " is NOT TRUE abaout franchising because In franchising the parent firm assumes relatively more risk tan with licensing, According to the other characteristics mentioned on the franchise agreement, it can be said that the advantage for the franchisor is that it transfers the risk and the cost of sales production to the franchisee, while benefiting from the benefits of the franchisee and this way consolidates its sign and its image; In short, your reputation as a company.

Explanation:

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