Events Promotion Corporation licenses trademarks to Fan Fave Souvenirs,Inc. ,to use in selling caps,sweatshirts,and t-shirts emblazoned with team logos during sporting events.The arrangement between these parties is

Question

Quizplus · Accepted Answer

The arrangement between Events Promotion Corporation and Fan Fave Souvenirs, Inc. is a franchise because it involves licensing trademarks to another company (Fan Fave Souvenirs) to use in selling merchandise featuring team logos. Franchising is a business model in which a company (the franchisor) grants the right to use its trademarks, products, and business methods to another company (the franchisee) in exchange for an initial fee and ongoing royalties.

Events Promotion Corporation Licenses Trademarks to Fan Fave Souvenirs,Inc