Burger's Inc. owns a number of fast food stores across the country. Ryan, who wants to start his own business, decides to open a store under the Burger's Inc. trademark. He will have to sell and market the fast food products according to the terms of the licensing agreement. In this scenario, Ryan is a:
A) venture capitalist.
B) franchiser.
C) franchisee.
D) manufacturing agent.

Question

Quizplus · Accepted Answer

Ryan is a franchisee because he is opening a store under the Burger's Inc. trademark and must abide by the terms of the licensing agreement. A franchiser would be the company that owns the trademark, in this case, Burger's Inc. A manufacturing agent is an entity that helps a company manufacture and distribute its products. A venture capitalist is someone who provides funding for startups, but this is not applicable in this scenario.