Normally in a franchise operation: ______.
A) both the franchiser and the franchisee will be liable to third persons for contracts that are breached by the franchisee.
B) only the franchisor will be liable to third persons for contracts that are breached by the franchisee.
C) only the franchisee will be liable to third persons for contracts that are breached by the franchisee.
D) neither the franchisor nor the franchisee will be liable to third persons for contracts that are breached by the franchisee.

Question

Quizplus · Accepted Answer

Normally, in a franchise operation, the franchisee operates as an independent business and is solely responsible for its contracts and liabilities, including breaches of contract. The franchisor typically does not share in these liabilities unless specifically agreed upon or under certain legal exceptions.

Normally in a Franchise Operation: ______