A franchise can be formed
A) only as a general partnership.
B) only as a corporation.
C) as either a corporation or partnership, but not as a sole proprietorship.
D) as a corporation, partnership, or sole proprietorship.

Question

Quizplus · Accepted Answer

A franchise can be formed as a corporation, partnership, or sole proprietorship. The choice of entity type will depend on various factors such as liability, management structure, taxation, and ownership structure. However, a franchise agreement will be required to establish the relationship between the franchisor and franchisee, regardless of the entity type chosen.

A Franchise Can Be Formed