Which of the following is true about franchising?
A) The parties in a franchising arrangement usually compete with each other for success.
B) The franchisee is the company that owns the franchise's name and distinctive elements and grants others the right to sell its product.
C) A franchise is an agreement whereby an independent businessperson is given exclusive rights to sell a specified good or service.
D) The franchiser is usually an independent local businessperson who agrees with the franchise owner to operate the business on a local or regional basis.

Question

Quizplus · Accepted Answer

Franchising is an agreement in which an independent businessperson (franchisee) is given the right to sell a specified product or service exclusively. The franchisee uses the franchiser's name, trademark, and other distinctive elements, and pays a fee or royalty in exchange for the right to operate under the franchiser's established business processes and systems. The parties in a franchising arrangement work together for mutual success.

Which of the Following Is True About Franchising