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

Question

Quizplus · Accepted Answer

Daggie's is a franchisor, which is a business model where the franchisor grants the rights to use their name and system to franchisees in exchange for fees and adherence to certain contractual terms. The other options are not applicable to the situation described.