229k views
2 votes
One of the world's most-recognizable franchisers is McDonald's. Advantages of franchising in global markets include:

User Aolphn
by
5.0k points

1 Answer

3 votes

Answer: d. forgoing the development costs and risks associated with opening up a foreign market.

Step-by-step explanation:

Franchising is a way of expanding a business by allowing another company to sell the products of the expanding company and pay them for it.

It works by the Expanding company (franchisor) providing their skills, technical know-how and allowing the franchisee to use their image rights to sell products.

This is a cheap way of expanding in foreign markets because the franchisor does not have to spend money starting up in that country and developing a business from scratch. It can simply license another company that is already there to sell for it thereby avoiding risks of setting up anew in a foreign market.

User Ketan P
by
4.9k points