Pandy's,a Canadian restaurant chain,promotes its business in Latin America with the hopes of offering prospective buyers the opportunity to open and operate Pandy's restaurants in their countries.Pandy's corporate management offers financial and marketing assistance to ensure success within established guidelines.What would the prospective buyer be classified as? What would Pandy's Corporation be classified as?

Question

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Pandy's Corporation is offering the opportunity for the prospective buyer to open and operate Pandy's restaurants in their countries, along with financial and marketing assistance. This is the definition of a franchise agreement, where the franchisor (Pandy's Corporation) grants the right to operate a business to the franchisee (prospective buyer) using established guidelines and support. Therefore, the answer is D, where the prospective buyer is the franchisee and Pandy's is the franchisor.

Pandy's,a Canadian Restaurant Chain,promotes Its Business in Latin America with the Hopes