H&R Block was sued by a franchisee for selling Internet services within the franchisee's territory without offering any compensation. This is an example of
A) churning.
B) co-branding.
C) encroachment.
D) multibrand franchising.

Question

Quizplus · Accepted Answer

This is an example of encroachment because H&R Block was selling services in a territory that belonged to a franchisee without compensating or consulting them. Encroachment occurs when a franchisor opens a new location or offers new services in an existing franchisee's territory without their permission and without compensation.

H&R Block Was Sued by a Franchisee for Selling Internet