To Protect Themselves Against Liability, Franchisors Often Require Individual Franchisees

question 51

Multiple Choice

To protect themselves against liability, franchisors often require individual franchisees to: ______.

• A) take out fraud insurance.
• B) register with the attorney general.
• C) publicly disclose their own separate business identities.
• D) disavow any connection with the franchisor.

---

Definitions:

Crisis

A situation or period of intense difficulty, trouble, or danger, which requires immediate remedies or response.

Federal Office

A governmental position or department established by the federal law or constitution, responsible for specific duties at a national level.

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and relatively smaller scale of operations compared to larger corporations.

State Administrative Regulation

Rules and regulations established by state government agencies to govern specific operational activities.