Which of the Following Statements Is Not True Concerning a Franchise

question 11

Multiple Choice

Which of the following statements is not true concerning a franchise?

• A)Franchisors must give a detailed disclosure document to any person who is considering becoming a franchisee.
• B)Franchisees are entitled to a 7- day cooling- off period after signing a franchise agreement.
• C)Franchisors must transfer their intellectual property rights in a geographical area to the franchisee who has bought the franchise rights to that area.
• D)Franchisees are protected by a mandatory (compulsory)code of conduct.

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Definitions:

Government

The organization, machinery, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it.

Restrictive Covenants

Clauses in a contract or agreement that limit certain actions or activities to protect business interests, such as non-compete or confidentiality agreements.

Promises

Declarations or assurances by one party to another agreeing to do or not to do something in the future, which may form the basis of a contract.

Land

A portion of the Earth's surface that includes its soil and anything naturally attached to it, considered as property.