Which of the following statements is true of a franchisor-franchisee relationship?
A) A franchisee is free to make its own judgments when operating a business.
B) A franchisor limits the franchisee's territory from expanding into other areas.
C) A franchisee is exempted from paying any kind of royalty to the franchisor.
D) A franchisor fully pays for the costs involved in national advertising campaigns.

Question

Quizplus · Accepted Answer

In a franchisor-franchisee relationship, the franchisor often limits the franchisee's territory to prevent competition between franchisees and to maintain market control.

Which of the Following Statements Is True of a Franchisor-Franchisee