Which of the Following Is a Drawback of the Franchise

question 79

Multiple Choice

Which of the following is a drawback of the franchise ownership?

• A) The franchisee lacks any kind of off- or onsite training from the franchisor.
• B) The franchisor lacks any benefit from the success of his or her franchisee.
• C) The franchisee must adhere to the franchisor's rules and operating guidelines.
• D) The franchisee must join a single-store retailer to become independent of the franchisor.
• E) The franchisor must incur the capital costs like purchase and modification of the retail space.

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Definitions:

Buyer in the Ordinary Course of Business

A legal term describing a person who purchases goods in good faith within the usual and customary practices of a particular trade or business.

Bona Fide Purchaser

A Bona Fide Purchaser is someone who buys property in good faith, without notice of any other party's claim to the property or any defects in the title.

Right to Redeem

The legal right allowing a debtor to reclaim ownership of property by paying off a loan or other obligation, usually within a specific period of time after a foreclosure sale.

Secured Party

An individual or organization that holds an interest in a security agreement on property offered as collateral, ensuring payment or performance of some obligation.