Question

true false

1. the franchisor develops the business model, brand, products or services, operating systems, and quality control standards.
2. the franchisee will pay the franchisor ongoing royalty payments, a specified percentage of revenue, during the entirety of the franchisees operations.
3. the franchisee has the ability to make changes to aspects of the business model, such as changes to the product or service, without permission from the franchisor.

Explanation:

1. The franchisor is the entity that creates and owns the core business assets including the model, brand, operational rules, and quality standards for the franchise system.
2. A standard franchise agreement requires the franchisee to pay ongoing royalties, often a percentage of revenue, for the duration of their operation to use the franchisor's assets.
3. Franchisees must follow the franchisor's established business model and cannot make unapproved changes to products, services, or operations, as consistency is a key part of the franchise system.

Answer:

1. True
2. True
3. False