1. (5 points) Assume that for fast food restaurants like Mcdonalds, some stores are owned by franchisees (independent businesses who pay a franchise fee to Mcdonalds) and some stores are directly owned by Mcdonalds who will hire the manager for these company owned stores. The manager at the franchise owned Mcdonalds is often the owner of the restaurant, and the manager of the Mcdonalds owned restaurant is a company employee who gets a flat salary. In which case will there be a principal-agent problem? Please explain