Luke owns a business,but his employees must wear the uniform of a nationally recognized company that dictates the marketing plan and operations procedures.What kind of a business does Luke own?
A) product distribution franchise
B) business format franchise
C) licensed IP
D) cross-equity alliance

Question

Quizplus · Accepted Answer

Luke owns a business that uses a business format franchise model. This is because the employees are required to wear a specific uniform dictated by a nationally recognized company. In a business format franchise, the franchisor provides a complete business format to the franchisee, including marketing plans and operational procedures, in exchange for ongoing royalties and fees. The franchisee then operates the business according to the franchisor's guidelines and must follow its established brand and operating procedures.

Luke Owns a Business,but His Employees Must Wear the Uniform