A franchise is which of the following?
A)A form of expansion used exclusively in restaurants
B)An intensive distribution strategy, used to maximize geographical coverage in a market area
C)A legal contract in which a producer and channel intermediaries agree each member's rights and obligations
D)All of the above

Question

Quizplus · Accepted Answer

A franchise is a legal contract in which a franchisor (the producer or brand owner) grants a franchisee (the individual or entity obtaining the rights to operate under the franchisor's name) the rights to operate a business under the franchisor's brand and sell its products or services, in exchange for a fee. It involves a detailed agreement specifying each party's rights and obligations, and is not limited to restaurants or an intensive distribution strategy.

A Franchise Is Which of the Following