Under What Circumstances Would a Typical Franchiser Have the Right

question 12

Multiple Choice

Under what circumstances would a typical franchiser have the right to cancel a franchise contract?

• A)The franchisee declares bankruptcy.
• B)The franchise fails to follow retail pricing guidelines set by the franchiser.
• C)Within five days of the initial signing of the contract
• D)If the franchiser decides he/she wants to buy back the franchise

---

Definitions:

Invention

The conception of a new product or process combined with the first proof that it will work.

Innovation

The process and outcome of creating something new or improved, including products, services, processes, or business models, that adds value.

Marginal Cost

The expense for creating a supplementary unit of a product or service.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the financial market.