Franchising Is Viewed as the Creation of a New Business

question 67

True/False

Franchising is viewed as the creation of a new business from a well-established formula.

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Definitions:

Principal

The main party involved in a contract or agreement, or the head of a school.

Agent

A person or entity authorized to act on behalf of another person or entity in a particular transaction or legal situation.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the presumed principal, irrespective of whether true authority exists.

Actual Authority

The express and implied powers given to an agent by a principal, allowing the agent to make legally binding decisions.