A franchise is a collection of networked firms in which the manufacturer or marketer of a product or service licenses the entire business to another person or organization called the _____.
A) licensee
B) franchisor
C) licensor
D) franchisee

Question

Quizplus · Accepted Answer

The franchisee is the person or organization to whom the franchisor licenses the entire business. The licensee is a general term used for someone who has obtained a license to use a product or service, but in this context, it does not specifically refer to someone who has acquired a franchise. The licensor is the party that grants the license, which in this case would be the franchisor. Therefore, the best choice is D.

A Franchise Is a Collection of Networked Firms in Which