Business · 2
What is the term for a business agreement where one party pays for the right to use another's brand and business model?
Answer
Franchise
A franchise is a business arrangement in which a franchisor grants a franchisee the right to operate a business using the franchisor's brand, systems, and support in exchange for fees and royalties. McDonald's and Subway are among the world's largest franchise systems.
💡 Did you know?
The word 'franchise' traces back to Old French meaning 'freedom' — early franchises were royal grants giving merchants the freedom to trade in a territory.
Other options people guess
- License
- Joint Venture
- Merger
Topics
- business-models
- entrepreneurship
- corporate
- retail
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