Pronto Tacos LLC Grants a Franchise to Omar to Open

question 5

Multiple Choice

Pronto Tacos LLC grants a franchise to Omar to open and operate a Pronto Tacos restaurant.Pronto will likely charge Omar

• A)an initial fee or lump sum price for the franchise license.
• B)a percentage of Omar's weekly payroll expense.
• C)an amount of Omar's monthly overhead savings,if any.
• D)none of the choices.

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Definitions:

Capital

Financial assets or resources owned by an individual or organization, used for investment or production.

Corporate Bylaws

Detailed rules adopted by a corporation governing its operations, including the rights and responsibilities of shareholders and directors.

Corporation By Estoppel

A legal doctrine that prevents a party from denying the corporate existence of a company when it has treated it as a corporation.

De Facto Corporation

A business treated as a legally incorporated company for all purposes except against the state in a direct proceeding, despite not completing the incorporation process properly.