Question

RST, Inc., a franchisor, is requiring its franchisee, Raymond, to make significant changes to the equipment and interior appearance of his business as a condition of renewing the contract. RST claims this is necessary because:

a. RST has changed its marketing plan and Raymonds store did not keep up with the changes. b. Raymonds contract has a lower royalty fee than current contracts.

c. sales from Raymonds franchise are lower than those in newer facilities. d. Raymonds customers have complained about the appearance of his facility.

Answer

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