Solved > 5. True or False: The FDC Franchise Disclosure:2123510 …

5. True or False: The FDC Franchise Disclosure Rule doesn’t require the franchisor to file its disclosure with the federal government.

a. True.

b. False.

6. True or False: Franchisors are generally liable for the torts of their franchisees.

a. True.

b. False.

7. If a customer is hurt at a franchisee’s parking lot because of inadequate lighting, is the franchisor liable?

a. Yes, if the franchisor exercised control over the lighting.

b. No, because franchisees are responsible for the physical building and surrounding areas.

c. Yes, because the customer can recover from the “deep pockets” of the franchisor.

8. What is co-branding?

a. Shared marketing between the franchisor and franchisee.

b. The operation of two or more franchised businesses at the same location.

c. Marketing the same product under two brand names.

d. Using franchisees to promote a brand name in addition to that of the brand name of the main product.

 

 

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