Which of the following statements is true of a franchise?
A) The franchisor pays royalties and fees to the franchisee.
B) The franchisor normally provides the franchisee with extensive training and support.
C) The franchisee sends out newsletters and provides Internet support to the franchisor.
D) The franchise agreement usually requires the franchisor to follow the franchisee's procedures to the letter.

Question

Quizplus · Accepted Answer

A franchise agreement typically involves the franchisor providing the franchisee with extensive training and ongoing support, including assistance with operations and marketing. The franchisee pays royalties and fees to the franchisor for the right to use the franchised brand and system. The franchisor dictates the operational procedures to be followed by the franchisee rather than the other way around.

Which of the Following Statements Is True of a Franchise