Which of the following, if true, weakens the argument for operating company-owned outlets?

A) Under the franchise model, the franchisee bears significant financial burdens that otherwise would be paid by the larger organization.
B) The Hungry Cow uses the corporate chain model in its domestic business.
C) Chinese consumers are brand conscious and, in general, show stronger brand loyalty than European customers.
D) Young Chinese consumers often have the financial support of both parents and four grandparents.
E) An extremely rapid expansion is likely to lead to declining profit margins due to logistics pressures.

Answer: A
Explanation: A) Choice A weakens the argument for the company-owned approach by pointing to an advantage of franchising: the franchisee helps to finance the project, which can make quick expansion easier to pull off. Choice B refers to domestic business and is therefore off the topic, but if anything, it suggests that the company-owned model has worked for The Hungry Cow. Choices C and D provide general information about China but nothing that helps resolve the question at hand. Choice E suggests that a slow and steady approach is better, which leans toward the company-owned approach.