Exam 36: B: Sole Proprietorships and Franchises

Bret buys a franchise from Comida Mexicano Ltd.If their agreement is like most franchise agree?ments,it will specify that Comida can ter?mi?nate the franchise

Burger Heaven,Inc. ,conducts a chain-style franchise.This involves the transfer to Chester,one of its franchisees,of

The day-to-day operation of franchise business normally is left up to the franchisee.

A franchise relationship may be governed by the law covering sales con?tracts as expressed in Article 2 of the Uniform Commercial Code.

Carl sells Direct Marketing Enterprises,a sole proprietorship,to Eve.This is a transfer of

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

Normally,a franchisee receives a windfall on the termination of a franchise.

Inger is a franchisee of Honey Bear Restaurants,LLC Their contract gives Honey Bear the right to control virtually all aspects of Inger's op?eration,including the hiring of employees.One of the employees,Joris commits a tort against Kiley,one of Inger's customers.Kiley files a suit against Honey Bear.Honey Bear is most likely

The simplest form of business is a sole proprietorship.

In-Home Maid Service Company uses a Web site to provide downloadable in?formation to prospective franchises.This online information is the equivalent of an offer that must comply with

Dominique buys a franchise from Cheyenne Artisans,Inc.This provides Cheyenne with an outlet for the firm's goods,some of which Dominique is required to buy at an established price.In their agree?ment,Cheyenne may also specify

The duration of a franchise is a matter to be determined between the parties.

Jim organized,and owns and operates,Jim's Landscaping Service in the simplest form of business organization.This is

Otis is interested in buying a franchise from Plentiful Markets Inc.This transaction,like other franchise deals,is regulated to protect

In a sole proprietorship,the proprietor shares the burden of any losses or liabilities incurred by the business enterprise with the government.

Doc's Sports Club and Elite Fitness Corporation enter into a franchise agreement that provides for its termination at any time for "cause." Doc's fails to meet Elite's membership sales quota.Is this "cause" for termination? Explain.

A franchisor is the purchaser of a franchise.

If a party to a franchise contract fails to perform its contractual duties,the other party may be subject to a lawsuit for breach of contract.

A franchisee can operate as an independent businessperson but cannot then obtain the advantages of a national organization.

A franchisee ordinarily pays an initial fee or lump sum price for a fran?chise license.