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Question

The salient feature(s) of franchising is/are____________.

A
the franchiser allows the franchisee to use his trade mark under a license.
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B
the franchise agreement do not requires the franchisee to follow franchiser's policies regarding mode of operation of business as they are free to conduct business in any way they like.
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C
the franchiser do not provide training of personnel working in the franchisee organization or any other type of help.
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D
all of above
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Solution

The correct option is B the franchiser allows the franchisee to use his trade mark under a license.
Salient features of franchising are
  1. Well established business.
  2. Needs limited investment.
  3. Easy entry in new markets.
  4. Business has large establishments.
  5. Helps in diverting business risks.
  6. Results in a large turnover.
  7. Separates labor and specialization.
  8. Allows use of brand name and trademark.

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