Which of the following is true of a franchise?
A) It is the international term for all small businesses.
B) It is a type of novelty organization.
C) It is an organization that provides loans to start small businesses.
D) It is a prepackaged business bought,rented,or leased from a company.

Question

Quizplus · Accepted Answer

A franchise is a prepackaged business model that is bought, rented, or leased from a company. The franchisee, or owner of the franchise, pays an initial fee and ongoing royalties to the franchisor, or the company selling the franchise. In return, the franchisor provides the franchisee with a proven business model, training, and ongoing support. This can include branding, marketing, and product or service offerings.

Which of the Following Is True of a Franchise