With respect to franchised operations,what is a "bust-out"?
A)Franchises whose sales begin rather slow,and then a positive situation such as a new office building emerges near the site and helps grow the business.
B)The successful expansion of a business,by selling franchises to others.
C)A scam operation that temporarily locates in an area,in order to sell fake or unproven franchises.
D)A lengthy and full investigation of the franchisor by the franchisee,and usually involves retaining an attorney to help with the legal matters.

Question

Quizplus · Accepted Answer

A "bust-out" in franchised operations refers to a scam operation where fraudsters sell fake or unproven franchises in an area, and then disappear with the franchise fees before any actual business operations take place. This leaves the franchisee with little to no recourse for recovering their investment.

With Respect to Franchised Operations,what Is a "Bust-Out