When compared to licensing agreements, the relationships established in franchising arrangements are typically volatile and short-term.

Question

Quizplus · Accepted Answer

Franchising arrangements usually involve long-term relationships where the franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing, and managing in return for a monetary consideration. This creates a stable and ongoing partnership rather than a volatile and short-term relationship.

When Compared to Licensing Agreements, the Relationships Established in Franchising