Question

Though start-up costs are higher in international franchising, there is less_____ because there are not as many other companies in the franchisor's industries.

1) competition
2) risk
3) profit
4) investment

Answer 1

In international franchising, the higher start-up costs are offset by less competition.

Step-by-step explanation:

The correct answer is 1) competition.

In international franchising, start-up costs tend to be higher compared to domestic franchising due to additional expenses like travel, legal fees, and adapting the business model to different market conditions.

However, there is typically less competition in international franchising because there are fewer companies in the franchisor's industries compared to the domestic market.

This can create opportunities for international franchisees to establish a strong presence and attract customers without facing intense competition from other companies.