Fact Pattern 20-1 Joan Decides to Enter into a Franchise Agreement with Great

Multiple Choice

Fact pattern 20-1
Joan decides to enter into a franchise agreement with Great Burgers to sell their burgers in her town.The franchise agreement she entered into with Great Burgers did not prohibit Great Burgers from granting other franchises in the area,but that did not concern Joan because she thought Great Burgers would treat her fairly.She did not bother to read the franchise papers,contracts,and disclosures she was provided.Joan's business went very well for the six months.Then,however,another Great Burgers franchise opened just down the street from Joan's restaurant.She was very upset and called Great Burgers to complain.They brushed off her concerns and told her that there was enough business for everyone.Joan,however,is interested in suing Great Burgers.
-Refer to fact pattern 20-1.What is the position of the Federal Trade Commission regarding a franchisor selling a franchise very near to an existing franchise?

A) That the practice is illegal.
B) That the practice is illegal unless the first franchisee provides specific permission for the sale to the second franchisee.
C) That the practice is legal and that no disclosures are required.
D) That the practice is legal but that certain disclosures must be made to the first franchisee when that agreement is made.