What are the advantages and drawbacks of a franchising strategy for consolidating a fragmented industry?

Group of answer choices

Advantages: lower costs, faster expansion, strong brand loyalty. Drawbacks: limited control, inability to capture economic profit, low innovation potential.

Advantages: deep knowledge of local markets, strong barriers to entry, high innovation potential. Drawbacks: slow expansion, limited control, higher cost of capital.

Advantages: strict control, all economic profit flows to the company, lower cost of capital. Drawbacks: slower expansion, lack of local market knowledge, limited latitude for innovation.

Advantages: strict control, strong barriers to entry, high innovation potential. Drawbacks: slower expansion, less local market knowledge, less economic profit captured by franchisees.

Advantages: rapid expansion, deep knowledge of local markets, latitude for developing new offerings and processes. Drawbacks: less control, franchisees capture some economic profit, higher cost of capital.