Question

Kripa has recently opened a franchise outlet of a popular ice cream. She thoroughly reads and follows the franchise agreement before taking any decisions. In the month of April, she was planning for all the expenses in the financial year. Kripa wants to understand the amount she is expected to contribute towards national advertising efforts of the franchisor.

1. Identify the ingredient of the franchise agreement she should check. (1)
2. Also mention one more information that is available in this ingredient identified in part (I). (1)

Answer 1

1. Kripa should check Proprietary Statement given in the franchise agreement.
2. Another information available in the proprietary statement:
   • how the franchise name is to be used, or,
   • the marketing and advertising procedures in place that the franchisee will be required to follow.