Which of the Following Is False Regarding Franchises

question 21

Multiple Choice

Which of the following is false regarding franchises?

• A) The franchisor can set sales quotas and record-keeping requirements.
• B) The franchisor has the legal authority to ensure that the franchisee maintains the quality of goods and services associated with the franchise.
• C) The UCC does not apply in the realm of disputes between franchisors and franchisees.
• D) A franchise is a contractual relationship between the franchisor and the franchisee.
• E) If a franchisor exercises too much authority in the day-to-day affairs of the franchisee's business, the franchisor could be held liable for the torts of the franchisee's employees.

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Definitions:

Startup Cost

The initial expenses required to start a new business, including costs for research, rent, supplies, equipment, and marketing.

Maintenance Cost

The expenses associated with keeping equipment, facilities, or assets in good working condition.

Insurance Coverage

The agreement in which an insurance company provides financial protection against loss, damage, illness, or death, in exchange for premium payments.

EHR Programs

Electronic Health Records programs, computer applications designed to manage healthcare information digitally.