A statement in the franchise agreement that states that the franchisee must decline to continue the agreement before the franchisor can offer the franchise to someone else is called a ______.

Question

Quizplus · Accepted Answer

The correct term is "right of first refusal." This clause gives the current franchisee the option to continue the agreement before the franchisor can offer the franchise to someone else. It ensures the franchisee has the first opportunity to renew or extend the agreement under the proposed terms before it is offered to third parties.

A Statement in the Franchise Agreement That States That the Franchisee