In a Franchise Contract,the Franchisor

question 97

Multiple Choice

In a franchise contract,the franchisor:

• A) makes sure all franchise outlets provide the same quality of service and products
• B) agrees to operate a franchise outlet in accordance with procedures prescribed in the contract
• C) agrees to pay a royalty to the franchisee
• D) is given permission to use a franchise name and format
• E) All answers provided are correct.

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Definitions:

Title Insurance

An insurance policy that protects property buyers and lenders against losses from defects in titles.

Cash-Equivalent Price

The cash-equivalent price is the price of a service or asset if paid for in cash at the same time, as opposed to being financed.

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Consideration

In legal and accounting terms, it refers to the value, either monetary or a promise of action, that is exchanged between parties in a contract.