To protect themselves against liability, franchisors often require individual franchisees to: ______.
A) take out fraud insurance.
B) register with the attorney general.
C) publicly disclose their own separate business identities.
D) disavow any connection with the franchisor.

Question

Quizplus · Accepted Answer

To protect against liability, franchisors often require individual franchisees to publicly disclose their own separate business identities. This helps to ensure that any legal actions or issues are directed only at the individual franchisee and not the franchisor as a whole. Taking out fraud insurance, registering with the attorney general, or disavowing any connection with the franchisor may offer some protection, but these are not typically required by the franchisor.

To Protect Themselves Against Liability, Franchisors Often Require Individual Franchisees