Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed?
A) voluntary chain
B) retailer cooperative
C) franchise
D) corporate chain
E) warehouse club

Question

Quizplus · Accepted Answer

A franchise is distinguished by the fact that it is based on a unique product, service, or method of doing business that has been developed by the franchisor and is licensed to the franchisee. The franchisee then operates the business using the franchisor's trademark, trade name, and business systems under a contractual agreement. This allows the franchisee to benefit from the franchisor's established brand recognition and marketing, while the franchisor expands their business through the franchisee's investment and operation.

Which Contractual System Is Distinguished by the Fact That It