A _____ is a contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties.
A) Franchise Disclosure Document (FDD)
B) franchise agreement
C) business format agreement
D) dealership agreement

Question

Quizplus · Accepted Answer

A franchise agreement is the contractual arrangement between a franchisor and franchisee that outlines the obligations, responsibilities, and rights of both parties. It covers key areas such as intellectual property rights, territorial rights, training and support, advertising requirements, and franchise fees. The Franchise Disclosure Document (FDD) is a legal document that contains detailed information about the franchise system and is provided to prospective franchisees before they sign the franchise agreement. The business format agreement and dealership agreement are also types of contractual arrangements, but they are not specifically related to franchising.

A _____ Is a Contractual Arrangement Between a Franchisor and Franchisee