The Primary Responsibility of the Franchisor, Such as McDonald's or Hilton

question 113

Multiple Choice

The primary responsibility of the franchisor, such as McDonald's or Hilton International, is to:

• A) learn about the brand and technology from the franchisee.
• B) test the franchisee for potential future acquisition.
• C) transfer to the franchisee knowledge and skills needed to compete at the local level.
• D) provide feedback to the franchisee regarding how the franchisor could become more effective and efficient.

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Definitions:

1933 Act

Also known as the Securities Act of 1933, it is a federal law enacted to ensure more transparency in financial statements and prevent fraud in the securities market.

Disclosure

The action of making new or secret information known, often required in legal and financial transactions to ensure transparency.

Dodd-Frank Act

Comprehensive financial reform legislation passed in 2010 in the United States to enhance financial stability and consumer protection.

SEC Authority

The legal power granted to the U.S. Securities and Exchange Commission to regulate and supervise the securities industry, including enforcing laws against market manipulation and fraud.