Which of the following is true of a franchise?
A)It is an agreement where two parties agree to share the ownership of a business.
B)It is owned by a person or a group with singular stores being operated within a local community.
C)It sells products under the brand name of a larger supporting organizational structure.
D)It is a group of brand names owned and operated by a single organization.

Question

Quizplus · Accepted Answer

A franchise is essentially a business model where the owner of a well-established brand or company (the franchisor) allows another party (the franchisee) to use their business model, brand, and products or services in exchange for a franchise fee and a percentage of profits. The franchisee operates the business locally, usually under the guidelines provided by the franchisor, and benefits from their established brand, marketing, and support network. Therefore, option C correctly describes the nature of a franchise. The other options do not accurately describe a franchise. A, B, and D are all incorrect because they do not accurately describe the nature of a franchise.

Which of the Following Is True of a Franchise