Which of the following kind of organization best represents a contractual association based on some unique product or service, a method of doing business, or a trade name or goodwill?
A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club

Question

Quizplus · Accepted Answer

A franchise organization is a contractual association where individuals or firms pay a fee, usually a percentage of sales, to operate under the franchisor's trade name or goodwill. The franchisee receives training, guidance, and operational support from the franchisor, which maintains control over the standards of product and service quality. The franchisee benefits from the established reputation of the franchisor and may also receive assistance with site selection, marketing, and inventory management.

Which of the Following Kind of Organization Best Represents a Contractual