A statement in the franchise agreement that states that the franchisee must decline to continue the agreement before the franchisor can offer the franchise to someone else is called a ______.

A) right of discontinuance
B) privilege of rescission
C) right of first refusal
D) right of denial

Right of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before others can.

Franchise Agreement

A legal contract between a franchisor and franchisee, establishing the terms and conditions for the franchisee to operate a franchised business.

Discontinuance

The cessation or closure of a product, service, or business operation.