Franchising accounts for more than $1 trillion of annual U.S.sales and nearly one-third of all retail transactions.Franchises are distinguished by three characteristics,which are: (1)The franchisee pays for the right to be part of the system: (2)the franchisor provides its franchisees with a system for doing business; and (3)________.

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The third characteristic of franchising is that the franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments. This allows franchisees to use the franchisor's established brand, products, and services. The franchisor typically provides ongoing support and guidance to franchisees, but franchisees still have some autonomy in running their business within the framework of the franchisor's system.

Franchising Accounts for More Than $1 Trillion of Annual U