A Franchise Is A Contractual Agreement Between

Question: A franchise is a contractual arrangement.

Answer: True

Question: Typically, the franchisee determines the territory to be served by the franchise.

Answer: False

Question: A partner owes to the partnership and the other partners a duty of loyalty.

Answer: True

Question: On a partners dissociation, his or her duty of loyalty to the partnership ends

Answer: True

Question: Laws governing franchising are designed in part to prevent franchisers from terminating franchises without good cause

Answer: True

Question: In-home maid service company uses web site to provide downloadable information to prospective franchises. This online information is the equivalent of an offer that must comply with

Answer: The federal trade commissions franchise rule

Question: Flip Gymnastics & Karate, Inc., grants a franchise to Gibby to operate a Flip gym. Flip may require Gibby to pay the franchisor a percentage of his

1. annual sales or volume of business.

2. b. weekly payroll expense.

3. c. monthly overhead savings.

4. d. none of the choices.

5. Answer: Annual sales of volume of business

6. Question: Hud and Iggy form Jerry-Bilt Construction to enter into a contract to build one bridge. Under their partnership agreement, Jerry-Bilt is to dissolve when the bridge is built. Iggy signs a contract for the firm to build a second bridge. Jerry-Bilt

7. Answer: a. dissolves as soon as the first bridge is built.

8. Question:

9. Answer: Dissolves immediately unless the partners change its business

10. Question:

11. Answer: The franchise’s business organization form