Question

The Federal Trade Commission will not allow the sale of franchises that are unfair to the franchisee. What is the primary role of the Federal Trade Commission in regulating franchises?

A) Ensuring low franchise fees
B) Preventing unfair practices
C) Promoting franchise profitability
D) Approving franchise sales

Answer 1

The primary role of the Federal Trade Commission (FTC) in regulating franchises is preventing unfair practices.

Step-by-step explanation:

The primary role of the Federal Trade Commission (FTC) in regulating franchises is preventing unfair practices. The FTC was created in 1914 to enforce antitrust legislation and prevent monopolies and unfair business practices. In the case of franchises, the FTC ensures that the sale of franchises is fair to the franchisee and prevents any practices that may harm the franchisee's rights or profitability.