From the Franchisor's Point of View, Which of the Following

question 22

Multiple Choice

From the franchisor's point of view, which of the following is incorrect regarding franchising?

• A) Establishing a franchise system should be approached carefully and deliberately.
• B) Franchising is a relatively simple business endeavor.
• C) Franchising involves managerially demanding tasks.
• D) Over the years a number of fraudulent franchise organizations have come and gone.
• E) Franchising is a fairly heavily regulated form of business ownership.

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Definitions:

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, typically involving the buying, selling, and leasing of such property.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions, intended to harmonize the law of sales and other commercial agreements within the United States.

Underwriter

In insurance law, the insurer, or the one assuming a risk in return for the payment of a premium.

Premium

The amount paid for an insurance policy, reflecting the cost of coverage.