A franchisor owns a trade name or trademark, and a franchisee sells or distributes goods using the trade name or trademark.

Question

Quizplus · Accepted Answer

This is a correct definition of a franchise agreement. The franchisor provides the franchisee with the use of their trademark or trade name in exchange for fees or royalties, and the franchisee operates under the established brand identity and business model of the franchisor.

A Franchisor Owns a Trade Name or Trademark, and a Franchisee