Jody Ingalls is a recent university graduate with a BSc in kinesiology. As she was having difficulty finding a job, Jody decided that she could create her own job by opening a fitness club. As luck would have it, she saw an advertisement in a Winnipeg newspaper featuring franchise opportunities in the fitness industry. Jody responded to the ad and the franchise owner showed her the financial statements for a “Fit for Life” fitness franchise in a Winnipeg suburb. The income statements indicated that the franchise had made $100 000 per year for the past several years. Jody was extremely excited and agreed to lease it for $50 000 per year for a five-year period. She signed the contract and started carrying on the business. Jody worked 12-hour days for a year but was not able to make a profit, and now she wants out of her contract. Can Jody get out of the agreement? Explain. Would your answer be different if the franchise was located on Prince Edward Island? Explain. What are the legal risks associated with “purchasing” a franchise? How can the risks be managed?