Question

Which of these statements about a franchise is correct?
A.
In a franchise, two franchisees allow each other to use their respective business systems, trademarks, and processes.
B.
In a franchise, two franchisors allow each other to use their respective business systems, trademarks, and processes.
C.
In a franchise, a franchisor allows a franchisee to use its business systems, trademarks, and processes.
D.
In a franchise, a franchisee allows a franchisor to use its business systems, trademarks, and processes.

Answer 1

Answer:

C

Explanation:

In a franchise, a franchisor allows a franchisee to use its business systems, trademarks, and processes

As the franchisor is the owner of the mother company with the ownership of special systems, trademarks, processes, etc. and is the only one has right to allow the other to use its possession.

The franchisor (the company) has right to give individual permission to run the business, utilizing the possession of the company. That individual is a franchisee. So it can be understood that franchisee gets permission from fanchisor to operate business under trademark, with intellectual property, etc. of the mother company.