Which of the following exemplifies an opportunistic behavior by a franchisor arising out of incompleteness or ambiguity in a contract?
A)Providing inferior service in an attempt to cut operating costs.
B)Terminating a well-operated franchisee and converting the establishment into a profitable company-owned outlet.
C)Fixing exorbitant prices for products having relatively elastic demand.
D)Terminating a franchisee who had been using the company brand name to endorse products that the agreement says it cannot.

Question

Quizplus · Accepted Answer

The franchisor is taking advantage of the ambiguity in the contract by terminating a successful franchisee and converting the location into a company-owned outlet, essentially benefiting from the franchisee's hard work and successful operations without compensation or recourse.

Which of the Following Exemplifies an Opportunistic Behavior by a Franchisor