Question

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor, except:
A.How many franchises are in the organization?
B.Are most of the profits of the franchise a function of fees from the sale of franchises or from royalties based on profits of franchisees?
C.What are the chances of further expansion of the company?
D.Does the franchisor have management expertise in production, finance, and marketing?

Answer

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