Which of the following is an advantage of franchising?

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Prepare for the UCF GEB3375 Exam 3 with engaging flashcards and best strategies. Practice multiple-choice questions with explanatory notes to master international business concepts. Ace your exam and advance your career!

Franchising offers a significant advantage in terms of the ability to internationalize quickly to many markets. This approach allows a company to expand its brand presence swiftly without the need for substantial capital investment or direct management of the new locations. Franchising enables the franchisor to leverage the resources and local knowledge of franchisees who are often more familiar with the specific market's nuances, including customer preferences and legal requirements. This localized management reduces many of the risks associated with entering new markets, as the franchisee is incentivized to make the business successful.

The other options highlight challenges or misinterpretations related to franchising. Difficulty in maintaining control relates to the potential inconsistencies in operations across different franchise locations, which can detract from brand integrity. Complete control over assets abroad can be misleading, as franchise agreements typically delegate significant operational control to the franchisee, which does not allow for full oversight by the franchisor. Thus, the focus on rapid internationalization presents a clear opportunity that is unique to franchising, making it a more advantageous option in this context.