For what type of contractual system does a parent company provide assistance in selecting the location, setting up the store or facility, advertising, and training personnel?

Question

Quizplus · Accepted Answer

The franchise system is a contractual system in which a parent company (franchisor) provides assistance in selecting the location, setting up the store or facility, advertising, and training personnel to a franchisee who operates a business under the franchisor's name and system. The parent company also collects fees and royalties from the franchisee. Administered system and conglomerate system are not relevant to the given scenario. Vertical integrated system and retail-sponsored cooperative do not involve assistance in selecting the location, setting up the store or facility, advertising, and training personnel.

For What Type of Contractual System Does a Parent Company