A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a:

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A franchise is a legal agreement that allows a business to operate using the name and business procedures of another firm. The franchisee (the person purchasing the franchise) pays a fee and royalties to the franchisor (the owner of the brand name and business system) in exchange for the right to use their name and system. This arrangement allows the franchisee to leverage the brand name and business model of the franchisor while still owning and operating their own business.

A Legal Agreement That Allows a Business to Be Operated