Question

A franchise agreement is a form of business opportunity where one party grants to another the right to sell goods or services under a marketing plan developed by the grantor.

a) True
b) False
c) Only for food-related businesses
d) Depends on the size of the franchise

Answer 1

A franchise agreement is a business opportunity where one party grants another the right to sell goods or services under a marketing plan. Franchisees purchase the rights to start a business based on a model designed by the franchisor.

Step-by-step explanation:

A franchise agreement is a form of business opportunity where one party grants to another the right to sell goods or services under a marketing plan developed by the grantor.

A franchise is another way to begin a business by purchasing the rights to start a business based upon a model designed by the franchisor, who in many cases provides training, supply chain support and support in setting up operations. In return, the franchisee pays a franchise fee, as well as royalty fees to the franchisor.