Explain why the federal government chose to regulate the activities of franchisors?

Explain why the federal government chose to regulate the activities of franchisors? Why are parties to franchise agreements not given the same flexibility and freedoms as in most other contracts?

Mary is an assembly line worker at a computer company. Mary becomes aware that an improvement is being made in the company s primary computer, which will significantly increase profits. Mary tells a friend to buy stock in the company. The friend does so and tells two other persons to do the same. The Company s profits increase greatly, and all three who purchased stock sell at a great profit. Discuss the liability of the parties and the basis for your belief.

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