Question

Carl is negotiating a franchise contract with Frank's Deli, a franchisor and a competitor of McDonald's. Frank's Deli is willing to give Carl 'territorial rights' to Orange County, where frank will open his franchise. Frank's Deli, however, will not specifically state that the franchise given to Carl is exclusive. The territorial rights clause will most likely a. not help Carl because Frank's Deli has the power to open any franchise it wishes by law regardless of any contract terms b. help Carl keep out additional McDonald's franchises from entering Orange County c. help Carl keep out additional Frank's Deli franchises from entering Orange County d. not help Carl keep out other franchises because the territorial rights are not exclusive.

Answer 1

Answer:

d. not help Carl keep out other franchises because the territorial rights are not exclusive.

Explanation:

                 It is mentioned that Carl is wishing to open a franchise of Frank's Deli, who is a competitor of McDonald's and is negotiating with Frank's Deli.

                Though Frank's Deli is willing to provide 'territorial rights' to Carl in Orange County, where Carl will open his franchise, but it is not specifically mentioned in the contract that the  franchise given to Carl is exclusive or not.

                Thus the territorial rights clause will most likely

d. not help Carl keep out other franchises because the territorial rights are not exclusive.