Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States. Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries. Thus far, research has shown that the rights to use many of the firm’s recipes can be sold to other restaurants, cafeterias, and food stores. Cajun can also sell prepackaged food products, complete with spices, to other markets. At this point, whether to start by opening company-owned outlets or selling franchises is still a toss up. In any case, the long-term picture looks good.
-In granting franchise rights,Cajun would be the _____ and the buyer would be the _____.
A)franchisee / franchiser
B)franchiser / subsidiary
C)parent / subsidiary
D)franchiser / franchisee

Question

Quizplus · Accepted Answer

In a franchise agreement, the company granting the rights (in this case, Cajun Chicken) is known as the franchiser, and the individual or entity purchasing these rights to operate a franchise is known as the franchisee.

Cajun Chicken, a Growing Franchise Chain Based in Lafayette, Louisiana