A contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules, is referred to as _________.

Question

Quizplus · Accepted Answer

The given description perfectly matches the concept of franchising, where a franchisee is given the right to operate a business under the established brand name and rules of the franchisor. The franchisor provides support and training to the franchisee in exchange for fees and/or royalties.

A Contractual Arrangement Between a Parent Company (A Franchisor) and an Individual