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A Franchisor,Garden Delicious Inc

Question 38

Multiple Choice

A franchisor,Garden Delicious Inc.,has 73 franchised outlets across Canada using the theme "healthy eating." Its Surrey,B.C.,franchisee,Tom Cain,has been adding bagels to the regular "authorized" menu.Garden Delicious Inc.has asked Tom on several occasions to stop,but he has refused,saying that the contract does not specifically prohibit adding items to the menu.Legally speaking,will the franchisor be able to stop this practice?


A) Yes,he will,since the franchisor has the money and legal clout to force compliance.
B) Yes,he will,because there is an implied term that the franchisee is to protect the goodwill and trademarks and trade secrets of the franchisor.
C) Yes,he will,since this practice will decrease the profits for all franchisees.
D) No,he won't,since Tom is an independent businessperson,he can manage his business as he sees fit-within the law.
E) No,he won't,since this practice will set a healthy precedent among the other franchisees.

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