Exam 30: Sole Proprietorships and Franchises

Haute Dogs,Inc.,sells a franchise to Irene's Cuisine,a lunch truck. Irene's Cuisine is

Nadia,the owner of Organic Farms,a sole proprietorship,wants to obtain additional business capital but to maintain control. This can best be accomplished by

Foster enters into an agreement with Grab n' Eat Burgers,Inc.,to operate a franchise in Home Town. Later,Grab n' Eat grants franchises to others within the same territory,causing Foster to suffer a significant loss in profits. In Foster's suit against Grab n' Eat,Foster's best argument is that the franchisor

Digital Wizards,Inc.,a franchisor of computer technicians,wishes to standardize the pricing practices of its franchisees because they have engaged in price-cutting to increase their respective shares of the market. The most prudent action might be for Digital Wizards to

Instead of setting up a business to market her own products,Rita considers entering into a distributorship franchise with Sports Equipment Corporation. This involves the transfer of

Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the Jumbo Juice trade name as a member of a select group of dealers that engage in retail juice sales. -To potential investors,Jumbo Juice must provide

In choosing a form of business organization for a new enterprise,important factors include the ability to raise capital.

Cathy buys an exclusive territory in which she is authorized to set up a plant to make Delite Dairy,Inc.,products. After receiving the recipes,Cathy begins making Evie's-brand yogurt and other Delite products. This is

Riki,the owner of Simply Sushi,is a sole proprietor. What are the chief characteristics,advantages,and disadvantages of this form of business organization? Riki wants to obtain additional capital to expand Simply Sushi,but she does not want to lose control of the firm. As a sole proprietor,what is her best option to attain these goals?

Level Fencing Company wants to present information in "disclosure documents" via the Internet to prospective franchisees. Among other legal requirements with which Level Fencing must comply,prospective franchisees must

Without creating a separate business organization,Reynold starts up,and assumes the financial risk of,Sole Savers,a new,pre-owned auto sales enterprise. Reynold is

Most franchise contracts provide that notice of termination must be given.

Faye is interested in buying a franchise from Gas n' Snax Stores Inc. This transaction,like other franchise deals,is regulated to protect

Typically,the franchisee determines the territory to be served by the franchise.

Corbin organized,and owns and operates,Corbin's Deep Sea Fishing Tours in the simplest form of business organization. This is

Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be

No state requires franchisors to provide presale disclosures to prospective franchisees.

Some states require the termination of a franchise when there is no "good cause" for it to continue.

Shop n' Pay Convenience Stores,Inc.,is a franchisor. Tonya operates a Shop n' Pay franchise. Ulysses is one of Tonya's employees. As a franchisor,if Shop n' Pay controls the day-to-day operations of the business to a significant degree,it may be liable for tortious acts by

A franchisee can operate as an independent businessperson but still obtain the advantages of a national organization.