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:

Systematically Related

Having elements or components that are interconnected and organized in a coherent, logical manner.

Non-Probability Sampling

A sampling method where not all members of the population have an equal chance of participating, often used for convenience or when random sampling is impossible.

Strict Criteria

Rigorous and precise standards or conditions that must be met or followed in the execution of a task or study.

Accurate Inferences

The process of drawing reliable conclusions from data and evidence with a high degree of precision.