Question

Joe wants to open a restaurant and feels his best chance of being successful would be to purchase the rights to a well-known restaurant concept. This form of restaurant ownership is known as which of the following?

Food service corporation

Food service franchise

Independent food service operation

Food service chain

Answer 1

Food-service franchise

Step-by-step explanation:

A food-service franchise is a business arrangement where an established and successful restaurant allows the opening of an independent branch under its brand name. The new branch will be similar to the other existing branches in terms of appearance, products and services, operations, and pricing.

For an entrepreneur to open a food service franchise, they need to purchase a license from the franchisor. The franchise license increases the chances of success as customers are already familiar with the brand.