Which of the following best represents a potential drawback for a hotel operating under a franchise agreement?

Question

BlackTom AI · Accepted Answer

The question asks which option best represents a potential drawback for a hotel operating under a franchise agreement. 
Option a: 'Increased exposure through global marketing efforts coordinated by the franchisor' — This is typically a benefit, not a drawback, because franchisors often provide centralized marketing, wider brand reach, and more consistent demand generation for franchisees. It can improve occupancy and visibility rather than hinder operations. 
Option b: 'Restrictions on customising service offerings to suit local guest preferences' — This is a classic drawback. Franchise agreements usually impose standardized brand standards, menus, decor, and service protocols to maintain consistency across the chain. Such restrictions can limit local responsiveness and the ability to tailor experiences to regional tastes, which may reduce guest satisfaction in some markets. 
Option c: 'Enhanced operational support and access to proprietary systems' — This is a clear benefit. Franchisees gain access to training, knowledge transfer, technology platforms, and ongoing support that can streamline operations and improve efficiency. It is not a drawback. 
Option d: 'Improved brand recognition leading to stronger booking performance' — Another advantage. A well-known franchise brand can drive trust, loyalty, and higher booking rates, which is beneficial to a franchisee rather than a drawback. 
In summary, only option b describes a potential disadvantage inherent to franchising, while options a, c, and d describe typical advantages of franchised hotel operations.

Which of the following best represents a potential drawback for a hotel operating under a franchise agreement?

View Explanation

Log in for full answers

Similar Questions

A(n)________ exists when a franchisor licenses retailers to sell its products subject to various sales and service conditions.

Ford uses a(n)________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

In which revenue model does an existing business allow another party to trade under the name of that business?

Question at position 5 Becoming a licensee or franchisee of a foreign brand does not internationalize the licensee or franchisee firm.正确错误

Franchising is a type of __________.

Which of the following is a strategic advantage for a hotel operating under a franchise model?

Jessa has paid an upfront lump sum plus a royalty on all sales to a specific fast-food company in return for the right to operate a business using its name and format in a specific location. This agreement makes Jessa a

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler