A contractual arrangement between a parent company and an individual or firm that allows the individual or firm to operate a certain type of business under an established name and according to specific rules is called:

Question

Quizplus · Accepted Answer

The scenario described is the basic model of franchising, where a franchisor allows a franchisee to use their established name, brand, and business model in exchange for fees and royalties. This provides the franchisee with a proven business model and brand recognition, and the franchisor with expansion opportunities and increased revenue.

A Contractual Arrangement Between a Parent Company and an Individual