[Cookie Problems] Rashi makes great chocolate chip cookies and sells them in her café called Rashi's Famous Cookies.Some of her friends have expressed interest in selling her cookies.They want to use her name and identify the cookies as Rashi's Famous Cookies.Seeing a business opportunity,Rashi agrees to bake the cookies and provide them frozen to her friends who will open other cafés under her café's name.Rashi strictly controls all packaging and sales.She also frequently inspects kitchens used by the sellers,pursuant to her agreements with them.Lola,one of Rashi's friends who entered into an agreement with Rashi to open a café and sell the cookies,was not being careful and negligently put a harmful ingredient into the cookie dough resulting in a customer,Jonah,becoming ill.Jonah threatens to sue both Lola and Rashi.Rashi is so exasperated that she cancels all the franchise contracts.Although the franchise agreements provide that,as long as requirements are met,the franchise agreements will continue for a period of two years,Rashi takes the position that the cookies involve a personal service using a trade secret,and that she cannot be held liable to her franchisees for discontinuation of the franchises.
-What type of arrangement did Rashi make with her friends?
A)A franchise that was a manufacturing agreement.
B)A joint venture.
C)A joint partnership.
D)A franchise that was a distributorship.
E)A franchise that was a chain-style business operation.

Question

Quizplus · Accepted Answer

A)In a chain-style business operation,such as McDonald's and Burger King,the
franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation.
B)In a chain-style business operation,such as McDonald's and Burger King,the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation.
C)In a chain-style business operation,such as McDonald's and Burger King,the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation.
D)In a chain-style business operation,such as McDonald's and Burger King,the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation.
E)In a chain-style business operation,such as McDonald's and Burger King,the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation.

[Cookie Problems] Rashi Makes Great Chocolate Chip Cookies and Sells