Al also suggested another way Genna could finance her expansion. He described setting up a chain of Car Keepers Garages by selling the rights to use the Car Keepers' name, business model, garage design, and service ideas to others who would like to own a similar shop. These individuals would pay Car Keepers an initial fee and monthly royalties based on earnings. Al is suggesting that Genna set up a
A) joint venture.
B) franchise arrangement.
C) C corporation.
D) master limited partnership.

Question

Quizplus · Accepted Answer

A franchise arrangement exists when someone with an idea for a business (the franchisor) sells the right to use the business name and to sell a product or a service (the franchise) to others (the franchisees) in a given territory. Franchisees usually pay the franchisor an initial fee and royalties. Many women have turned to franchising as a means of financing an expansion of their business.

Al Also Suggested Another Way Genna Could Finance Her Expansion