Which of the following statements is/are TRUE about a Franchise Disclosure Document (FDD)? Group of answer...

Which of the following statements is/are TRUE about a Franchise Disclosure Document (FDD)?

Group of answer choices

Federal law requires the franchisor to give a potential franchisee an FDD.

The purpose of the FDD is to guarantee that the franchisor’s business model is sound.

A franchisee can bring suit under federal law against a franchisor who has failed to provide an FDD prior to purchase of the franchise.

A and B only

A, B and C

Expert Solution

Federal law requires the franchisor to give a potential franchisee an FDD: TRUE

A Franchise Disclosure Document (FDD) is basically a legal disclosure document. The document must be provided to a potential franchisee who is about to make a significant investment in a U.S. franchise.

FDD is not a guarantee, it is rather a pre sale disclosure document which is necessary to make an informed decision prior to entering into a franchise relationship. It provides them with information essential to make an assessment of potential benefits and risks, to make meaningful comparisons, etc. As per the Franchise Rule, 23 areas of disclosure are specified which include items like Business Experience; Litigation; Bankruptcy;Financing; etc.

In case of failure to provide an FDD and other violations, the FTC ( Federal Trade Commission) Rule does not provide franchisees with a private cause of action. Instead, the FTC is charged with prosecuting violations of the FTC Rule.

keosha answered 10 months ago

Which of the following statements about chloroplasts is true? Group of answer choices The stacks of...

Which of the following statements about chloroplasts is true? Group of answer choices The stacks of interconnected sacs within the chloroplast are known as stroma; this is where the light-collecting for photosynthesis occurs. The stacks of interconnected sacs within the chloroplast are known as thylakoids; the light-collecting for photosynthesis occurs here. Chloroplasts are found in eukaryotic cells, therefore they contain linear DNA. The DNA of the chloroplast is found within the thylakoid sacs. The chloroplast has one single membrane layer...

Which of the following statements about "meaning" is true? A) Group of answer choices B) Point...

Which of the following statements about "meaning" is true? A) Group of answer choices B) Point of view is synonymous with meaning. C) Setting and action are unrelated to meaning in a story ENglish 1302 D) The subject of a story states its meaning E) Meaning is made up of separate themes

Which of the following statements about global economic growth is NOT true? Group of answer choices...

Which of the following statements about global economic growth is NOT true? Group of answer choices In 2010 it was noted that, globally, banks faced a "wall" of maturing debt. The economic struggles of large economies impact the global economy more than those of small economies. The credit crisis started in 2008 and increased in 2009. From 1980 to 2012 China has had the largest economy and rate of expansion.

Which of the following statements is true? Group of answer choices If a firm has a...

Which of the following statements is true? Group of answer choices If a firm has a project that management believes will be very successful, management is more likely to finance the project with debt financing than with new equity Issuing new equity is a positive signal to investors Issuing debt is a negative signal to investors If a firm has a project that management believes will be very successful, management is more likely to finance the project with equity than...

Which of the following is true about the dividend policy of a company? Group of answer...

Which of the following is true about the dividend policy of a company? Group of answer choices The dividend policy of a company should affect the future value of a stock but not the current value Companies with low excess return periods typically pay lower dividends The higher the dividend paid, the higher the current value of the stock If the dividend is expected to grow, it will reduce the expected future value of the stock because the company is...

Which of the following statements is TRUE? Group of answer choices Under the doctrine of contributory...

Which of the following statements is TRUE? Group of answer choices Under the doctrine of contributory negligence, a plaintiff is compensated after taking into account his/her responsibility in a loss claim. Occurrence-based liability insurance exposes the insurer to long-tail claims. Inland marine insurance provides coverage mainly for transport on inland waterways.

Which of the following statements is TRUE? Group of answer choices a.A market is in equilibrium...

Which of the following statements is TRUE? Group of answer choices a.A market is in equilibrium when the number of buyers equals to the number of sellers b.In a free market system, markets (composed of large numbers of buyers and sellers) eventually reach equilibrium price and quantity c.The concept of equilibrium requires that all individuals have an equal amount of income d.The free market system creates a result that is both efficient and fair to everyone

Which of the following statements regarding sales returns and allowances is not true? Group of answer...

Which of the following statements regarding sales returns and allowances is not true? Group of answer choices A reduction in the selling price because of damaged merchandise is included in sales returns and allowances. Sales returns and allowances do not have an impact on gross profit. Sales returns and allowances are closed to the Income Summary account. Sales returns and allowances are rarely disclosed in published financial statements. Sales returns and allowances are recorded in a separate contra-revenue account.

a. Which one of the following statements regarding a database index is true? Group of answer...

a. Which one of the following statements regarding a database index is true? Group of answer choices they help improve the security of databases they reduce the number redundnt entries in a database they are a way of changing the order of the records in a table they are required for HIPAA compliance All of the above b. Which one of the following represent how Microsoft PowerPoint can be best used: Group of answer choices The best use of PowerPoint...

Which of the following statements is true of conflicts? Group of answer choices Human conflict is...

Which of the following statements is true of conflicts? Group of answer choices Human conflict is not a normal occurrence. Managers should pursue all the conflicts in which employees are involved. Interaction among parties who differ in interests leads to conflict. Conflicts always end in hostility and frustration. Flag this Question Question 20.1 pts Which of the following statements is true about negative conflicts? Group of answer choices They boost esteem or purpose. They decrease innovation and creativity. They decrease...

Question