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Which of the Following Is True of a Franchising Relationship

Question 66

Multiple Choice

Which of the following is true of a franchising relationship?


A) A franchisor pays a percentage of the gross sales to a franchisee.
B) Usually, a franchisee is a foreign national whom a franchisor supplies with goods.
C) A franchisee sells or distributes goods using a trade name or trademark owned by a franchisor.
D) Federal law allows franchisors to terminate franchise agreements without any cause in order to protect their patent rights.

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