A McDonald's franchise includes the right to use McDonald's many trade names,specifications of the product to be sold,operating methods,marketing plan,and national advertising.Franchisees pay to the franchisor both an up-front fee to obtain the franchise rights and a percentage of gross sales.Which of the following types of franchising does this situation illustrate?

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This situation illustrates business format franchising, where the franchisor not only provides the right to use their trade name and product specifications but also the operating methods, marketing plan, and national advertising. Franchisees pay an upfront fee and a percentage of gross sales in exchange for the entire business format. Conversion franchising is when an independent business converts to a franchise. Trade name franchising is when the franchisor only provides the right to use their trade name. Product distribution franchising is when the franchisor only provides the right to distribute their products.

A McDonald's Franchise Includes the Right to Use McDonald's Many