Question Completion Status: QUESTION 14 Many franchisees execute the franchise agreement in the name of a closely held corporation that has been formed to operate the franchise business. In this case the franchisor highly recommends O No personal guarantee is required Only one shareholder of the franchisee's corporation to commit with personal guarantee. O Each shareholder of the franchise corporation requires to commit with personally guarantee. Fifty one percent of the shareholders require to commit with personal guarantee. QUESTION 15 A franchisor may want to separately lease the signage bearing its trademarks to the franchisee. Which of the following is a correct statement? O There is no separate fee for sign lease. It is included in the initial franchise fee. There is no separate fee for sign lease. It is included in the monthly royalty fee. The sign lease allows the franchisor to immediately remove the sign upon termination of the franchisee. Both A and B are correct. QUESTION 16 Which of the following is a correct statement with "Employee Noncompetition and Nondisclosure Agreement"? O All information disclosed to said employees must be kept confidential. It imposes a noncompetition restriction on employees of the franchisees. The restriction only applies to management team members. Both A and B are correct. QUESTION 17 Which of the following is a correct statement with "Area Development Agreements"? O The area developer franchisee has resale rights to other potential franchisees The area developer franchisee has no resale right to other potential franchisees. The area developer franchisee has resale rights in the international market. The area developer franchisee has no rights to resale its current single franchise unit. QUESTION 18 Which of the following is a correct statement with "Subfranchisors"? O Subfranchisors who act as independent selling organizations that are responsible for franchise recruitment. Subfranchisors are responsible for offer and sale of franchises Subfranchisors are responsible for ongoing support of franchisees within their given region. O All of the above. Click Save and Submit to save and submit. Click Save All Answers to save all answers