The Major Difference Between the Franchisee-Franchisor Relationship and the Agent-Principal

question 39

Multiple Choice

The major difference between the franchisee-franchisor relationship and the agent-principal relationship is that only

• A)the franchisee relationship permits a business to expand rapidly.
• B)principals employ the assistance of others in order to reach out to a wider public.
• C)franchisors give authorization for entering into contracts.
• D)agents market the principal's products.
• E)franchisees contract with members of the public on their own behalf,not as agent for the franchisor.

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Definitions:

Assignment

The process of transferring rights or obligations from one party to another in a contract.

Delegation

The process of assigning responsibility and authority to someone to carry out specific activities, while the person delegating retains ultimate responsibility for its success.

Lawsuit

A legal action taken by one party against another in a court of law, usually seeking compensation for damages or enforcement of a right.

Duty

A moral or legal obligation; a responsibility.