Module 15 writing assignment-as franchising profits grow, store owners feel squeezed

Critical Thinking Questions

Watch the video below, then respond to the following five questions. ‘As Franchising Profits Grow, Store Owners Feel Squeezed”

(each question is worth 3 points)

What is the main challenge facing franchisees in the fast-food industry today?
Why are franchisees feeling increased financial pressure from promotions like McDonald’s $5 value meal?

What long-term risk could arise from unresolved tension between franchisors and franchisees?

4. What is one suggested reform to improve franchisee-franchisor relationships?

5. What percentage of McDonald’s revenue is derived from licensing out its name and brand to smaller business owners?

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