A Contractual Agreement Is Formed Between a Franchisor and a Franchisee

question 21

True/False

A contractual agreement is formed between a franchisor and a franchisee in the franchising system.

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Definitions:

Trade Practices

Refers to the methods, operations, and conduct of a business or trade, including advertising, marketing, and selling of goods and services, often subject to regulation to ensure fairness and competition.

Regulation

Rules or directives made and maintained by an authority to manage or govern behavior within its jurisdiction, typically aiming at ensuring fairness, safety, or standards.

Subrogation

The substitution of parties whereby the party substituted acquires the rights at law of the other party, usually by way of contractual arrangement.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, resulting in harm or damage.