McPherson's,an ice cream joint,recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration.The argument that the agreement was a franchise agreement is strengthened by the fact that ________.
A)McPherson's is a part of a corporate chain that prevents it from forming business alliances autonomously
B)McPherson's is a department store that is trying to avoid the wheel-of-retailing
C)McPherson's products are in the introductory stage of the product life cycle
D)McPherson's is a company that enjoys substantial goodwill and security in the market
E)McPherson's competitors have entirely different product lines and mixes

Question

Quizplus · Accepted Answer

A franchise agreement is often characterized by the franchisor's established brand and market goodwill, which McPherson's enjoys, allowing franchisees to benefit from the brand's reputation.

McPherson's,an Ice Cream Joint,recently Entered into an Agreement by Which