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international franchising is most likely to suceed when the franchiosr has implememted a diversification strategy T...

international franchising is most likely to suceed when the franchiosr has implememted a diversification strategy

T /F and why

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Answer #1

Answer -
The given statement is true.

Explanation -
Diversification strategy becomes an important factor in success of international franchising. By adopting the diversification strategy, international franchisers spilt their investments in multiple units and become more popular among franchisee units at international level. It also facilitates through diversification, that franchiser gets a source of consistent dividend by spreading risk of investments in multiple units. In diversification strategy, some franchisees get success in opening multiple locations of same business and others get success in opening of different options of business in franchisee units.

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