The franchise agreement: must be approved by the Securities and Exchange Commission (SEC) guarantees that the franchisee will make a profit is the contract that details the terms of the franchise guarantees that the franchisor will make a profit removes any liability from the franchisor if the franchisee does not make a profit

The franchise agreement is the contract that details the terms of the franchise

Explanation:

A franchise agreement is a legally binding document that outlines a franchisor's terms and conditions for a franchisee. Every franchise is governed by these terms, which are generally outlined in a written agreement between both parties.

In actuality, most franchise agreements are for an initial term of 10 to 20 years, and most franchisees leave before that term is completed.

The franchise agreement will designate the territory in which you will operate and outline any exclusivity rights you may have as well as spell out the royalty fees, franchise fee, trademark and mode of operations.

Sarah's income elasticity for groceries = percentage increase in grocery / percentage raise in income.
Elasticity for groceries = 30 /10 = 3
Therefore, Sarah's income elasticity for groceries = 3.
Income elasticity is a value, which measures the responsiveness of the quantity demanded for a good or service to a change in the income of the consumers demanding for the good.