The Disclosure Document That Franchisors Must Give to Prospective Franchise

question 220

Multiple Choice

The disclosure document that franchisors must give to prospective franchise buyers is not required to include which of the following information?

• A) an audited financial statement of the franchisor
• B) the background and experience of the key executives
• C) the names, addresses, and phone numbers of other franchisees
• D) list of responsibilities of the franchisor and the franchisee once the deal is made
• E) all of the other choices must be provided

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Definitions:

Personal Computer

A compact, relatively inexpensive computer designed for individual use, capable of running general-purpose applications and accessing the internet.

Cost Per Unit

The total cost to produce a single unit of product, including fixed and variable costs.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance premiums.

Level Of Activity

A measure of the volume of production or operations within a business, used to allocate costs or plan for capacities.