Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent?

Question

Quizplus · Accepted Answer

The agreement described in the passage is a typical example of a franchise organization, in which an established business offers proprietary products, services, and systems to independent owners/operators who agree to both company standards and a legal agreement, which may include payment of fees or royalties to the franchisor. The franchisor provides support and training, and the franchisee receives the opportunity to operate an established business model with a proven track record.

Mind and Body Fitness Recently Entered into a Financial Agreement