The relationship between the franchisor and the franchisee is ordinarily an arm's-length employment relationship.

Question

Quizplus · Accepted Answer

The relationship between the franchisor and the franchisee is not an employment relationship, but rather a contractual relationship in which the franchisor licenses the use of their business model and trademark to the franchisee in exchange for fees and ongoing royalties. It is a relationship that is governed by the terms of the franchise agreement, which outlines the respective rights and obligations of the franchisor and the franchisee.

The Relationship Between the Franchisor and the Franchisee Is Ordinarily