________ franchising involves the owner of an existing business becoming a franchisee to gain the advantage of name recognition.

Question

Quizplus · Accepted Answer

Conversion franchising involves an existing business being converted to a franchise. The owner of the business becomes a franchisee and gains the benefits of being associated with an established brand, which includes name recognition amongst the customers. Therefore, option C is the correct answer.

Option A (product distribution) refers to a type of franchising where a franchisor supplies its products to a franchisee, who then sells them to the customers. Option B (master franchise) is a type of franchising where the franchisor grants the master franchisee the right to sub-franchise within a particular territory. Option D (pure franchising) is not a recognized term in franchising, and therefore, is an incorrect option.

________ Franchising Involves the Owner of an Existing Business Becoming