Question & Answer: Typically, franchise contracts: are heavily weighted in favor of the franchisee due to federal…..

Typically, franchise contracts:

are heavily weighted in favor of the franchisee due to federal regulation.
do not cover transfer and buyback provisions.
are not negotiated by established franchisers.

Expert Answer

Right answer is C- That typically a franchise contracts are not negotiated by the established franchisers.

Reason:

Typically franchisers are not open to negotiate the contract with franchise and put clauses in the contract that it is not negotiable because it is the aim of the franchisors to protect and establish a franchise but if it failed on some term, it should not affect any other franchise and company/franchisor’s name in any condition.

In order to keep it brand and name intact and keep its value high, franchisors don’t compromise on terms and conditions with the franchisee

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