A Subway franchisee does not do a good job managing food safety. Customers purchase sandwiches that contain expired turkey and become ill reflecting poorly on the brand and exposing the company to liability. This is an example of:

a. A disadvantage for the franchisee - the cost associated with this incident will be a burden to the franchise owner.
b. An advantage for the franchisee - the franchisee can expect that the franchisor will cover any legal fees associated with the incident.
c. A disadvantage for the franchisor - a lack of control over the franchisee resulting in damage to the brand.

Ans: c. A disadvantage for the franchisor - a lack of control over the franchisee resulting in damage to the brand.