An Entrepreneur Bought a Franchise to Operate a Restaurant

Multiple Choice

An entrepreneur bought a franchise to operate a restaurant. The agreement says that the entrepreneur must pay the franchisor 5% of total sales per month. Now,the franchisor insists on selling another franchise in the same market area unless the entrepreneur increases the monthly payment to 7%. This is an example of

A) free riding.
B) technical uncertainty.
C) gaining legitimacy.
D) hold-up.
E) patent.