Question

Which of the following is NOT true about franchise​ agreements?

A. Franchisors may not license or disclose their trade secrets to franchisees.

B. Franchisors are often owners of trade​ secrets, including product​ formulas, business plans and​ models, and other ideas.

C. Most franchisors license the use of their trade​ names, trademarks, and service marks to their franchisees.

D. A​ franchisor's ability to maintain the​ public's perception of the quality of the goods and services associated with its trade​ name, trademarks, and service marks is the essence of its success.

E. Franchisors license and disclose many of their trade secrets to franchisees.

Answer 1

In a franchise agreement franchisor is the owner of the trade and all the product formulas and the business plan and model which has been managing. Also the franchisor allow the franchisee to use the trade name and trademark. Bol bol it is up to the franchisor whether to licence or disclose their trade secrets to the franchise or not. Mostly the franchisor do not disclose their trade secret because of the risk of competition in the market.

also it is the responsibility of the franchisor to maintain the public perception of the quality of the good because because of that perception the image of the brand the product will be good in the minds of people.

Therefore the statement about franchise agreement is franchises licence and disclose many of the trade secret to franchise which is not true.

Therefore the correct option is E.

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