Match the term with its definition.
-A rule that requires the franchisor to disclose certain information to prospective franchisees
A)franchise
B)franchise contract
C)Franchise Disclosure Document (FDD)
D)franchisee
E)Franchise Rule
F)franchising
G)franchisor
H)multibrand franchising
I)nondisclosure agreement
J)piggyback franchising

Question

Quizplus · Accepted Answer

The Franchise Rule is a regulation that requires the franchisor to disclose certain information to prospective franchisees.

Answer: C
 The Franchise Disclosure Document (FDD) is the document that includes the required information under the Franchise Rule.

Answer: G
 The franchisor is the company that grants the franchise to the franchisee.

Answer: D
 The franchisee is the person or company that operates the franchised business.

Answer: F
 Franchising is a business model in which a franchisor grants the right to use its trademark and business system to a franchisee.

Answer: B
 The franchise contract is the legal agreement between the franchisor and franchisee that outlines the terms and conditions of the franchise relationship.

Answer: H
 Multibrand franchising is a strategy in which a franchisor allows a franchisee to operate multiple franchises under different brand names.

Answer: J
 Piggyback franchising is a strategy in which a franchisee operates a franchise business within another business, such as a retail store or restaurant.

Answer: I
 A nondisclosure agreement is a legal agreement between two parties, such as a franchisor and potential franchisee, to keep certain information confidential.

Match the Term with Its Definition