Which of the Following Statements Is TRUE with Respect to Franchises

question 55

Multiple Choice

Which of the following statements is TRUE with respect to franchises?

• A)Although other arrangements are available for other types of business, a true franchise is always concerned with the food-service industry.
• B)A franchise arrangement always includes, among other things, an agency relationship.
• C)Franchisors typically include a provision in their franchise arrangements that the franchisee is not an agent of the franchisor.
• D)Franchise agreements do not contain trademark licences.
• E)Franchisors do not worry about whether they may be held liable for actions of franchisees because each franchise is a separate business.

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