Which statement best describes a franchise arrangement?
A)An arrangement in which one party licenses its business practices to another party.
B)An arrangement in which one party exchanges goods or services with another party with little or no consideration.
C)An arrangement in which one party provides goods to another party to sell on its behalf and will accept all goods that are not sold.
D)An arrangement in which one party allows the purchaser to make payments over an extended period of time.

Question

Quizplus · Accepted Answer

A franchise arrangement is a type of licensing agreement where the franchisor (one party) grants the franchisee (another party) the right to use its trademark, products, and processes for a fee or percentage of revenue. The franchisor provides support, ongoing training, and assistance to ensure the franchisee's success while maintaining quality standards across all locations. Examples of well-known franchises include McDonald's, Subway, and Marriott.

Which Statement Best Describes a Franchise Arrangement