The purpose of liquidation fees identified in a franchise agreement is to compensate the

Name: The purpose of liquidation fees identified in a franchise agreement is to compensate the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Liquidation fees are designed to compensate the franchisor in case of an early exit by the franchisee. This fee helps to offset any losses incurred by the franchisor due to the early termination of the franchise agreement, such as lost profits and costs associated with finding a replacement franchisee.

The Purpose of Liquidation Fees Identified in a Franchise Agreement