What allows a company to retain control while expanding through franchising?

The correct answer is associated with the concept of maintaining control while expanding through franchising. When companies choose to franchise, they are able to expand their brand and reach new markets without the need to invest heavily in each new location.

This approach allows the franchisor to retain control over the brand and operational procedures, ensuring consistency across different franchise units while leveraging the investment and local management expertise of franchisees. By developing a franchise model that outlines strict operational guidelines and brand standards, the company can ensure that each franchise location operates within the framework set by the franchisor. This structured method is key to maintaining brand integrity and quality, allowing the franchisor to manage the brand more effectively.

The other options do not fully capture the essence of franchising as a method of maintaining control through expansion. For example, complete ownership of capital speaks more to full ownership models rather than the mutual benefits of franchising. Multi-size expansion might imply growing beyond the franchise model, while franchisee control suggests that the franchisee would have more influence than the franchisor, which contradicts the controlled nature of successful franchising. Lastly, reduced capital expenditure highlights a benefit of franchising but doesn't specifically address how control is retained during the expansion process.