Midas Muffler sells its business name and the rights to its products to prospective businesspersons who want to use the Midas name and offer Midas products.In this arrangement,Midas would be the _____________,and the buyer of these rights is the ____________.
A)owner; limited partner
B)co-signer; co-signee
C)franchisor; franchisee
D)wholesaler; retailer

Question

Quizplus · Accepted Answer

This scenario describes a franchising arrangement, where Midas Muffler is the franchisor (providing the business name and product rights) and the buyer is the franchisee (using the Midas name and products in their own business). Option A is not accurate, as a limited partner generally has a more passive role in a business and does not receive the rights to use a well-known brand name. Option B is not accurate, as co-signing relates to lending money and not franchising. Option D is not accurate, as there is no mention of a wholesale or retail relationship.

Midas Muffler Sells Its Business Name and the Rights to Its