An entity or individual granted the right to conduct business according to specified methods and terms of another party is known as a
A) franchiser.
B) franchisee.
C) franchise.
D) licensee.

Question

Quizplus · Accepted Answer

A franchisee is granted the right to conduct business according to specified methods and terms of another party, known as the franchisor. A franchisor grants a franchise to a franchisee, which allows them to use their brand name, products, and business systems in exchange for a fee and ongoing royalties. Option A (franchiser) is incorrect as it is a misspelling of franchisor. Option C (franchise) is incorrect as it refers to the entire business model or arrangement, not the individual or entity granted the right to conduct business. Option D (licensee) is incorrect as it is a broader term that refers to any individual or entity that has been granted a license to use someone else's intellectual property or technology, and is not specific to the business model of a franchise.

An Entity or Individual Granted the Right to Conduct Business