Final answer:
A franchise means that individuals own the outlets after buying a license from the franchisor, which in this case, is KFC. Franchisees benefit from the use of the brand and support from the franchisor while paying a franchise fee and royalties. The correct answer is b) Owned by individuals who bought a license.
Step-by-step explanation:
When Kentucky Fried Chicken (KFC) has franchises in Japan, it implies that these outlets are owned by individuals who purchased a license to operate the KFC brand in their locations. Unlike outlets directly run by the company, these franchisees have invested in the rights to use the company's trademark, branding, and business model.
They also receive ongoing support from the franchisor, which in this case is KFC. This support may include training, supply chain access, and assistance in establishing operations. However, owning a franchise also involves financial obligations such as an initial franchise fee and ongoing royalty payments to the franchisor. This type of business model has been a successful strategy for expansion, popularized by fast-food chains, allowing them to grow their presence widely and rapidly.
Therefore, referring to the question: "What does it mean to have a franchise?" the answer is b) Owned by individuals who bought a license. This license allows them to operate under the franchisor's brand and utilize its business system, in exchange for certain fees and adherence to corporate standards.