To Avoid Making a Hasty Judgment, a Franchisee May Not

question 55

Multiple Choice

To avoid making a hasty judgment, a franchisee may not purchase a franchise for ________ days from the time the Franchise Disclosure Document is received.

• A) 3
• B) 5
• C) 10
• D) 14
• E) 30

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Definitions:

Insurable Interest

A basic requirement for the issuance of an insurance policy, indicating that the person purchasing the policy has a stake in the safety or preservation of the insured item or person.

Equipment

Tangible assets used in the operation or activities of a business or entity, ranging from office supplies to machinery.

Arbitration Clause

A contract provision that requires parties to settle disputes through arbitration rather than litigation in courts.

Credible Insurance

Insurance coverage provided by a reputable and financially stable company that can be trusted to pay out claims as stipulated by the policy.