Rhonda recently entered into a contractual agreement with StellarCutz,a national chain of affordable,walk-in hair salons.Under the agreement,Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes.Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand.Which of the following best describes Rhonda's business?
A) franchise
B) factory outlet
C) superstore
D) acquisition
E) joint agreement

Question

Quizplus · Accepted Answer

The contractual agreement between Rhonda and StellarCutz, where Rhonda uses the trade name and receives support while paying start-up and annual licensing fees, is characteristic of a franchise business model.

Rhonda Recently Entered into a Contractual Agreement with StellarCutz,a National