Analyze Because of strict operating standards, franchisees typically do not have

much room for innovation. How might this be a disadvantage for the franchisee?

How might it be a disadvantage for the parent company?

The correct answer to this open question is the following.

Because of strict operating standards, franchisees typically do not have much room for innovation. This might be a disadvantage for the franchisee in that innovation is part of the process of offering new or better things to consumers in order to differentiate the company from other competitors. This might also be a disadvantage for the parent company in that it desires to offer innovative products, services or solutions to appeal the clients but due to strict operating standards, franchisees do not have much room for innovation. They have to respect and follow what is marked in the operation manuals of the company.

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