Which of the Following Statements Is TRUE with Respect to Franchises

Multiple Choice

Which of the following statements is TRUE with respect to franchises?

A) Although other arrangements are available for other types of business, a true franchise is always concerned with the food-service industry.
B) A franchise arrangement always includes, among other things, an agency relationship.
C) Franchisors typically include a provision in their franchise arrangements that the franchisee is not an agent of the franchisor.
D) Franchise agreements do not contain trademark licences.
E) Franchisors do not worry about whether they may be held liable for actions of franchisees because each franchise is a separate business.