Business format franchising is characterized by ________.

Question

Quizplus · Accepted Answer

Business format franchising involves a close, interactive relationship between a franchisor and a franchisee, where the franchisor provides the franchisee with a complete business format, including operating systems, training, marketing, and ongoing support. Dealers in a business format franchise, therefore, operate under a set of standards and guidelines established by the franchisor. Option B and C describe characteristics of an independent dealer network, not a business format franchise. Option D is incorrect as most business format franchises require royalty fees to be paid by franchisees to franchisors.

Business Format Franchising Is Characterized by ________