Which of the Following Should Make a Potential Franchisee Suspicious

question 11

Multiple Choice

Which of the following should make a potential franchisee suspicious about a franchiser's honesty?

• A) Claims that the franchise contract is a standard agreement and that there is no need to read it or have an attorney look it over
• B) An offer of direct financing of a specific element of the franchise package
• C) Not providing detailed operational information until 10 days before signing the contract
• D) Requiring franchisees to spend a certain percentage of profits on advertising

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Definitions:

Interorganizational Conflict

Interorganizational conflict occurs between organizations.

Unions

Organizations formed by workers to protect their rights, improve their working conditions, negotiate wages, and address grievances with employers.

Arbitration

A method of conflict resolution where a neutral third party makes a binding decision to resolve a dispute between two parties.

Emotional Antagonisms

Negative feelings or hostility between individuals or groups, often resulting from opposing actions or beliefs.