A franchisor grants the rights for another firm to produce and market its products as long as the business agrees to specific operating requirements.

Question

Quizplus · Accepted Answer

This statement is true. This type of agreement is known as a franchise agreement, in which the franchisor grants the rights to another company (the franchisee) to use their trademarks, products, and systems in exchange for fees and adherence to specific operating requirements.

A Franchisor Grants the Rights for Another Firm to Produce