Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
How the franchise name is to be used and the marketing and advertising procedures required to be followed by the franchisee, is mentioned in which ingredient of the franchise agreement?
Options:
Operations manuals
Proprietary Statement
Ongoing site maintenance
None of the above
Correct Answer:
Proprietary Statement
Explanation:
Proprietary Statements: Proprietary statements outline how the franchise name is to be used, as well as the marketing and advertising procedures in place that the franchisee will be required to follow. Also, the franchisor documents how much the franchisee will be required to contribute toward national advertising efforts.