Which of the following is true of a franchise agreement made between a franchisor and a franchisee?
A)It directs the franchisor to spend significant time being visible in the new franchise operation, talking with employees, and making suggestions.
B)It contains clauses requiring the purchase of supplies and the displaying of marketing material.
C)It is enforced at the federal level, and the jurisdiction lies with the federal court.
D)It commands the franchisee to make all significant changes in one day so as to alleviate any lingering concerns by the employees.

Question

Quizplus · Accepted Answer

A franchise agreement typically includes provisions requiring the franchisee to purchase supplies and materials from the franchisor or authorized suppliers, as well as to display marketing material and adhere to certain operational standards. Option A is incorrect, as the franchisor does not typically spend time being visible in the franchise operation. Option C is incorrect, as franchise agreements are typically enforced at the state level, not federal. Option D is incorrect, as franchisees are usually given a certain period of time to make changes and implement new processes.

Which of the Following Is True of a Franchise Agreement