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3. Hypotheticals<br />
#1 - Training & Support<br />
A franchisor of a national restaurant system specializing<br />
in fried chicken has implemented a system-wide change.<br />
The change involves switching from traditional deep-<br />
fryers to high-speed pressure cookers (which cost<br />
$50,000). The Franchise Agreement has a provision that<br />
the franchisees must purchase the equipment that is<br />
required by the franchisor. The franchisor has told its<br />
franchisees that the new pressure cookers will reduce<br />
cooking times as well as costs (through a reduced need<br />
for cooking oil).
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