Which of the Following Statements Is Incorrect Regarding Franchising

question 58

Multiple Choice

Which of the following statements is incorrect regarding franchising?

• A) In some industries, such as automotive and retail food, franchising is a dominant form of business ownership and growth.
• B) There are some instances in which franchising is not appropriate.
• C) Franchising is a relatively new form of business organization.
• D) Franchising, by its very nature, involves the sharing of knowledge between a franchisor and a franchisee.
• E) Franchising is a relatively poorly understood form of business ownership and growth.

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Definitions:

Offeree

The person or party to whom an offer is made, especially in contract law.

Offeror

The party in a contractual agreement who makes an offer to enter into a contract, awaiting acceptance by the offeree.

Stipulates

Specifies expressly, setting out terms or conditions clearly within an agreement or document.

Effective Upon Dispatch

A legal principle stating that an offer, acceptance, or revocation becomes effective when it is sent, not when it is received.