Question

Amir buys a Baskin Robbins franchise. He has made a financial commitment and agrees to conduct business in accordance with Baskin Robbins' standard of operations. In exchange, he can expect to receive all of the following from Baskin Robbins EXCEPT:
a.building specifications and designs.

b.site recommendations.

c.free equipment and training.

d.management and accounting support.

e.immediate name recognition.

Answer 1

Answer:

c.free equipment and training.

Explanation:

A franchise is when a company gives another party the right to use its name and brand to do business. The franchisor provides loscence that covers it's procedures, know how, intellectual property, brand, business model, and rights to sell its products.

The franchisor provides expertise which includes site recommendations, name recognition, accounting and management support. To ensure uniformity of brand it also gives building specifications and designs.

Three payments are made by the franchisee to the franchisor:

- Payment for trademark

- Reimbursement for training and advisory services performed

- An agreed part of sales made