In a franchise arrangement,one business enters into a contract with another to sell its products exclusively.Which of the following is true with respect to a franchise?
A)The franchisee provides the technical expertise to manage the franchise.
B)The franchisor must comply with rules,standards,and specifications with respect to products and prices.
C)Examples of franchises in Canada include Tim Hortons,KFC,and Budget Car Rental.
D)An advantage of a franchise arrangement is the equal bargaining position of the parties.
E)The franchisee and franchisor are in partnership together.

Question

Quizplus · Accepted Answer

The examples provided in option C are all well-known franchises in Canada. Option A is incorrect as it is the franchisor who provides the technical expertise to manage the franchise. Option B is correct as the franchisor typically imposes rules and standards on the franchisee with respect to products, prices and other aspects of the business. Option D is incorrect as the franchisor typically has more bargaining power than the franchisee. Option E is incorrect as the franchisee and franchisor are not in a partnership together, but rather have a contractual relationship.

In a Franchise Arrangement,one Business Enters into a Contract with Another