McDonald's, iHop, and Subway are all _________.
A)business-format franchises
B)product-distribution franchises
C)business franchise venture
D)manufacturing franchises
E)general service franchise

Question

Quizplus · Accepted Answer

McDonald's, iHop, and Subway are all examples of business-format franchises, where the franchisee is given a complete business model to follow, including branding, marketing, operations, and training, in exchange for fees and royalties. Product-distribution franchises, on the other hand, usually involve the franchisee selling or distributing a specific product under the franchisor's brand name, such as Coca-Cola or Pepsi. Business franchise venture, manufacturing franchises, and general service franchises are not established categories in the franchising industry.

McDonald's, IHop, and Subway Are All _________