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RST,Inc ,A Franchisor,is Requiring Its Franchisee,Raymond,to Make Significant Changes to the Equipment

Question 43

Multiple Choice

RST,Inc. ,a franchisor,is requiring its franchisee,Raymond,to make significant changes to the equipment and interior appearance of his business as a condition of renewing the contract.RST claims this is necessary because:


A) RST has changed its marketing plan and Raymond's store did not keep up with the changes.
B) Raymond's contract has a lower royalty fee than current contracts.
C) sales from Raymond's franchise are lower than those in newer facilities.
D) Raymond's customers have complained about the appearance of his facility.

Correct Answer:

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