Daggie's Sandwiches,Inc. ,sells the rights to use its name and sell its sandwiches in a given market area to aspiring business people who are willing to pay agreed upon fees and meet certain contractual terms.Daggie's:
A)Is offering investors the opportunity to form limited partnerships.
B)Is a franchisor.
C)Creates private subsidiary companies.
D)Offers a tax-free investment potential.

Question

Quizplus · Accepted Answer

Daggie's is using a franchising business model where entrepreneurs pay for the right to use the company's name and sell its products in a specific market area. This is not a limited partnership, the creation of subsidiaries, or a tax-free investment opportunity.