Wiener Haus #82 has been underperforming for a few years. The franchisee (owner of Haus #82) isfrustrated and files a claim against the franchisor for breach. The franchisee claims that theagreement he signed contained a statement at the start of the agreement detailing that the businessmodel the franchisor developed was "proven effective and profitable." On these facts, does thefranchisee have a winning breach of contract claim against the franchisor?O No, the contract formed was a voidable contract. Thus, the franchisor is void of responsibility if the businessmodel does not produce profit for the franchisee.O Yes, the franchisee relied on these statements when deciding to contract and thus the franchisor should beresponsible when the business model fails to work for the franchisee.O No, courts have generally held that the type of language relied upon by the franchisee is "prefatory" and doesnot create a duty on the part of the franchisor.O Yes, the money paid to the franchisor to open Haus # 82 unjustly enriched the Wiener Haus franchise; thus,the franchisor should be responsible for the costs incurred by the franchisee when the business model failedto produce profits.O Yes, the franchisor misrepresented the success of the business model he developed for the franchise.

In the realm of franchise agreements, the dynamics between franchisors and franchisees are governed…

Answered: Wiener Haus #82 has been…

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