Which of the following is true of franchising?
A. Franchising requires heavy financial investment by the franchisor.
B. Local franchisees must pay the vast majority of the expenses associated with getting their businesses up and running.
C. The decision to franchise means that a firm will get to enjoy a large portion of the profits made under its brand name.
D. Franchises are only successful if franchisees are provided with a complex business model.
E. Franchising is most frequently used in manufacturing industries.
Answer: B. Local franchisees must pay the vast majority of the expenses associated with getting their businesses up and running.