Which of the following statements about franchises is correct?

Question

Quizplus · Accepted Answer

Franchises are agreements between a business (franchisor) and an individual (franchisee) where the franchisee is granted the right to sell goods or services under certain conditions determined by the franchisor. The franchisee usually pays an initial fee (acquisition cost) to the franchisor and may also be required to pay ongoing fees or royalties. The acquisition cost of a franchise is amortized over the term of the agreement, which is typically a limited number of years. Therefore, statement C is correct while statements A, B, and D are incorrect.

Which of the Following Statements About Franchises Is Correct