Quiz 31: Franchise and Special Forms of Business
A Franchisee and Franchisor Are Usually Established as the Same
A franchisee and franchisor are usually established as the same corporation.
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A franchise arrangement is typically used in a situation where there is no trademark or other intellectual property owned by the franchisor.
There are four (4)basic forms of franchises: (1)trusteeship franchise; (2)manufacturing plant franchise; (3)"chain-link" franchise; and (4)geographical franchise.
An "area" franchise grants the franchisee the authority to sell franchises on behalf of the franchisor.
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