Which of the following should make a potential franchisee suspicious about a franchiser's honesty?

Question

Quizplus · Accepted Answer

Any franchiser who claims that the franchise contract is standard and that there's no need to read it may be trying to hide important details or clauses that could negatively affect the potential franchisee. It is essential to read and understand the franchise contract before signing it.

Answer: C
 If a franchiser does not provide detailed operational information until 10 days before signing the contract, it may be a red flag. A potential franchisee should have enough time to review and understand the operations of the franchise before committing to it.

Answer: D
 Requiring franchisees to spend a certain percentage of profits on advertising may be considered suspicious. It may indicate that the franchiser is using advertising as a way of generating additional income for themselves, rather than for the benefit of the franchise as a whole.

Which of the Following Should Make a Potential Franchisee Suspicious