150k views
1 vote
The key factors that influence success of franchising approaches are monitoring costs (based on physical and cultural distances), the principal's international experience, and

a) the principal's financial investment in the business.
b) the principal's marketing expertise.
c) the brand equity in the new market.
d) learning the competition.
e) the level of involvement from the company.

User Mdrozdziel
by
7.4k points

1 Answer

2 votes

Final answer:

The success of franchising approaches depends on monitoring costs, the principal's international experience, and significantly, the brand equity in the new market, among other factors.

Step-by-step explanation:

The key factors that influence the success of franchising include several elements. One is the monitoring costs, which can be affected by physical and cultural distances between the franchisor and franchisee. The principal's international experience is another critical factor, as this experience can provide valuable insights into navigating different market dynamics. Among the options presented in the question, c) the brand equity in the new market is also a significant factor that can influence a franchise's success. Brand equity refers to the value a brand adds to a product or service and can have a profound impact on the customer's perception and the franchise's ability to compete in the new market. The principal's financial investment, marketing expertise, competition knowledge, and the level of involvement from the company are also important considerations that can affect the viability and profitability of a franchising approach.

User Mrfazolka
by
7.3k points