Which of the following is a benefit for the franchisor in a franchising model?

The benefit of reduced investment risk for the franchisor in a franchising model is significant because it allows the franchisor to expand their brand and reach without bearing the full financial responsibility that typically comes with opening new locations. In a franchising arrangement, franchisees invest their own capital to set up and operate the business. This structure minimizes the franchisor's financial exposure while still allowing them to earn royalties and fees from the franchisee's sales.

Moreover, franchisees are often highly motivated business owners who are committed to the success of their franchise location, which can lead to better operational performance and lower risk for the franchisor. This risk-sharing model enables franchisors to grow their brand and market presence more rapidly and efficiently. Thus, reduced investment risk is a crucial advantage of the franchising system, making it appealing for those looking to expand their business footprint.