A franchise is established when parties of a general partnership conduct business outside the state of their incorporation.

Question

Quizplus · Accepted Answer

A franchise is not established through conducting business outside the state of incorporation. Instead, it is a legal agreement in which a franchisor grants a franchisee the right to operate a business using the franchisor's name, products or services, and business model, in exchange for an initial fee and ongoing royalties.

A Franchise Is Established When Parties of a General Partnership