Daggie's Sandwiches,Inc. ,sells the rights to use its name and sell its sandwiches in a given market area to aspiring business people who are willing to pay agreed upon fees and meet certain contractual terms.Daggie's:
A)creates private subsidiary companies.
B)is offering investors the opportunity to form limited partnerships.
C)is a franchisor.
D)offers a tax-free investment potential.

Question

Quizplus · Accepted Answer

Daggie's Sandwiches, Inc. is utilizing franchising as a business model, which involves selling the rights to use its name and sell its sandwiches to others in exchange for fees and contractual obligations. This allows for expansion of the Daggie's brand while allowing franchisees to start their own business with the support of an established company.