Question

Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent?

A) corporate chain
B) voluntary chain
C) franchise organization
D) independent retailer
E) retailer cooperative

Answer 1

The arrangement between Mind and Body Fitness and independent business people for providing holistic services and programs is a franchise organization.

Step-by-step explanation:

The financial agreement described, where Mind and Body Fitness allows independent business people to set up establishments offering its services and programs, represents a franchise organization. This type of business arrangement allows individuals to operate their own businesses under the branding and business model of the franchisor. The franchisee benefits from brand recognition, established business practices, and ongoing support, while the franchisor benefits from expanded market presence and franchise fees.