A franchise is a type of license purchased by a franchisee from a franchisor to allow them to trade under the name of that business.

Franchise

A type of license purchased by a franchisee from an existing business called a franchisor to allow them to trade under the name of that business.

Recognizing the relationship between a franchisor and a franchisee.
Identifying the legal and financial aspects involved in purchasing a franchise license.
Understanding the concept of franchising and its role in business operations.

Verified Answer

Feb 18, 2024

Final Answer :

True

Explanation :

This is the standard definition of a franchise.

Learning Objectives

Recognizing the relationship between a franchisor and a franchisee.
Identifying the legal and financial aspects involved in purchasing a franchise license.
Understanding the concept of franchising and its role in business operations.