Asked by Bryce Folsom on May 14, 2024
Verified
Anyone who does business without creating a separate business organization has a franchise.
Franchise
Any arrangement in which the owner of a trademark, trade name, or copyright licenses another to use that trademark, trade name, or copyright in the selling of goods or services.
Separate Business Organization
An entity formed to engage in commercial, industrial, or professional activities, distinct and legally independent from its owners.
- Understand the defining characteristics and legal implications of operating as a sole proprietorship.
Verified Answer
SM
sofia munozMay 18, 2024
Final Answer :
False
Explanation :
Operating a business without creating a separate business organization does not automatically mean the individual has a franchise. A franchise involves a specific agreement where one party (the franchisor) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. Simply doing business independently does not constitute having a franchise.
Learning Objectives
- Understand the defining characteristics and legal implications of operating as a sole proprietorship.
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