Which of the Following Should Make a Potential Franchisee Suspicious

question 24

Multiple Choice

Which of the following should make a potential franchisee suspicious about a franchisor'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:

Units of Output

The measure of total production or services produced by a company or sector.

Workers

Individuals engaged in any form of employment or labor, including both physical and intellectual efforts, contributing to the production process.

Marginal Product

The additional output generated by employing one more unit of a particular input, keeping other inputs constant.

Number of Workers

The total count of individuals employed within a firm, an industry, or the economy to perform various tasks and services.