contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as __________.

Question

Quizplus · Accepted Answer

Franchising is a contractual arrangement between a parent company (franchisor) and an individual or firm (franchisee) that allows the latter to operate a certain type of business under an established name and according to specific rules. The franchisee pays a fee to the franchisor and agrees to operate the business according to the franchisor's guidelines.

Contractual Arrangement Between a Parent Company and an Individual or Firm