Which of the following is true about franchising?
A) It can be conducted as a sole proprietorship or a corporation but not as a partnership.
B) It typically involves a corporation as a franchisor.
C) It does not include the risk of violating federal and state antitrust laws under any circumstances.
D) It is not contractual.

Question

Quizplus · Accepted Answer

The franchising relationship is contractual. The franchisor may conduct its business as a sole proprietorship, partnership, or corporation and so may the franchisee. Typically, the franchisor is a corporation, and often the franchisee forms a corporation to own and operate the franchised business.

Which of the Following Is True About Franchising