The major difference between the franchisee-franchisor relationship and the agent-principal relationship is that only

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In a franchisee-franchisor relationship, the franchisee contracts with members of the public on their own behalf, not as an agent for the franchisor. In contrast, in the agent-principal relationship, the agent acts on behalf of the principal to market their products or services. Option A is incorrect as both relationships can facilitate business expansion. Option B is partially correct, as the principal may employ agents, but this is not the defining difference between the two relationships. Option C is incorrect as both relationships involve authorization to enter into contracts.

The Major Difference Between the Franchisee-Franchisor Relationship and the Agent-Principal