What is the difference between product and trade name franchising and business format franchising?

Answer the following questions:
1. What makes franchising different from other forms of business?
2. What is the difference between product and trade name franchising and business format franchising? Which one accounts for the majority of franchising activity?
3. Should franchise information provided by a franchisor be discounted? Why or why not?
4. Do you beleive that the Franchise Disclosure Document is useful for franchise evaluation?
5. What are possible reasons for buying an existing compnay versus starting a new business from scratch?

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