In a Franchise Arrangement,one Business Enters into a Contract with Another

Multiple Choice

In a franchise arrangement,one business enters into a contract with another to sell its product exclusively.Which of the following is true with respect to a franchise?

A) The franchisor,in addition to an initial sum of capital,is required to pay a substantial franchise fee as well as regular payments to the franchisee.
B) The franchisee and franchisor are in partnership together.
C) The franchisor must comply with rules,standards,and specifications with respect to products and prices.
D) A franchise arrangement is an effective way to expand the business.
E) The franchisee provides the product and other supplies and equipment.