In a franchise arrangement,one business enters into a contract with another to sell its product exclusively.Which of the following is true with respect to a franchise?
A)The franchisor,in addition to an initial sum of capital,is required to pay a substantial franchise fee as well as regular payments to the franchisee.
B)The franchisee and franchisor are in partnership together.
C)The franchisor must comply with rules,standards,and specifications with respect to products and prices.
D)A franchise arrangement is an effective way to expand the business.
E)The franchisee provides the product and other supplies and equipment.

Question

Quizplus · Accepted Answer

A franchise arrangement allows a business to expand by granting others the right to operate under its brand and sell its products, thus increasing its market presence without the franchisor having to invest in new locations directly.

In a Franchise Arrangement,one Business Enters into a Contract with Another