Match the term with its definition.
-A process for expanding a business and distributing goods and services through a licensing relationship
A)franchise
B)franchise contract
C)Franchise Disclosure Document (FDD)
D)franchisee
E)Franchise Rule
F)franchising
G)franchisor
H)multibrand franchising
I)nondisclosure agreement
J)piggyback franchising

Question

Quizplus · Accepted Answer

Franchising is the process for expanding a business and distributing goods and services through a licensing relationship.

Answer: A
 A franchise is a type of licensing agreement that allows the franchisee to use the franchisor's trademark, products, and operating systems.

Answer: C
 The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees that contains information about the company and the franchise agreement.

Answer: D
 A franchisee is a person or entity that has entered into a franchise agreement with a franchisor and is authorized to operate under the franchisor's trademark and business model.

Answer: E
 The Franchise Rule is a regulation enforced by the Federal Trade Commission (FTC) that requires franchisors to provide certain information to prospective franchisees in the FDD.

Answer: G
 A franchisor is a company that grants a franchisee the right to use its trademark, products, and operating systems in exchange for a fee.

Answer: H
 Multibrand franchising is a strategy where a franchisee operates multiple franchises from different franchisors.

Answer: I
 A nondisclosure agreement is a legal agreement between two parties that prohibits one or both parties from disclosing certain confidential information to third parties.

Answer: J
 Piggyback franchising is a strategy where a franchisee operates two franchises at the same location, often in related industries.

Match the Term with Its Definition