Ask Question
BusinessBusiness
30 October, 23:14

Rico owns a Burger King franchise. Over the years, he has become concerned that there may be too many Burger King restaurants in his area. What shortcoming of franchising does this explain?

(A) profit sharing with the franchiser

(B) limited product line

(C) restrictions on purchasing

(D) possible market saturation

(E) less freedom in business decisions

+2
Answers (1)
  1. 31 October, 00:19
    0
    The correct answer is letter "D": possible market saturation.

    Explanation:

    Franchising businesses are corporations in which the franchisee has access to a franchisor's proprietary information, processes and trademarks. In exchange for a royalty fee, the franchisee buys the right to sell the product or service under the established brand name.

    The disadvantage of franchises is that the main company could franchise its brand name as many times as the company decides. As a result, some markets could face the saturation of the same store if there was not a proper demographic study in providing the franchise.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Rico owns a Burger King franchise. Over the years, he has become concerned that there may be too many Burger King restaurants in his area. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
When the amount of revenue collected in advance decreases during an accounting period: (A) Accrual-basis revenues exceed cash collections from customers. (B) Accrual-basis net income exceeds cash-basis net income.
Answers (1)
Why is mobile banking considered riskier than online banking?
Answers (2)
Which doctrine evoked God and nature to rationalize western expansion?
Answers (1)
Jerrod is relatively new to Xenon Corporation and wants to make sure that he makes a good impression on his coworkers and supervisor. He agrees with the supervisor's opinion most of the time and constantly compliments others about their good work.
Answers (1)
A door hardware company's marketing and supply chain teams have developed a good rapport between them. As information flows easily back and forth between the teams, additional ways are discovered to optimize the distribution process.
Answers (1)
New Questions in Business
An online medicaladvice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.10 per share. The offering price was $27.90 per share.
Answers (1)
Which of the following is an example of how the principle of beneficence can be applied to a study employing human subjects? Ensuring that the selection of subjects includes people from all segments of the population.
Answers (1)
Match the following definitions with the correct term 1. Delocalization of food production and consumption connections 2. The process of learning culturally specific preferences passed from generation to generation 3.
Answers (1)
Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013.
Answers (1)
A Trek Cycles manufactures and sells bicycles to retailers. The X-1 model sells for $500 and has per-unit variable costs of $300 associated with its production. The company has fixed expenses of $30,000 per month.
Answers (1)
Home » Business » Rico owns a Burger King franchise. Over the years, he has become concerned that there may be too many Burger King restaurants in his area.
Sign Up Forgot Password?