In a retail franchise agreement, the franchisee
A) learns by trial and error the successful operation of the business.
B) supplies managerial expertise to the owners.
C) chooses the location and suppliers that are most beneficial to the franchisee.
D) follows the management practices and accounting systems of the franchisor.
E) takes no initial risk, but pays a very heavy percentage in royalties.

Question

Quizplus · Accepted Answer

In a retail franchise agreement, the franchisee is required to follow the management practices and accounting systems established by the franchisor to ensure consistency and brand integrity across all franchise locations.

In a Retail Franchise Agreement, the Franchisee