Answer:
The correct answer is letter "C": the franchisor is the principal.
Explanation:
A franchise is a type of business in which a franchisee, acting as an agent, access the property rights, trademarks, and processes of a company, the franchisor -acting as the principal- by buying them to establish operations under the name of the company. Franchising is a form of starting a business avoiding expenses in product entry.
Franchisees provide franchisors a royalty on a regular basis which is the fee charged for using the company's brand name.
Answer: c. The franchisor is the principal
Explanation: A franchise is an authorization granted by a company to sell or distribute its goods or services in a certain area. While a franchise is a type of license (or business) that a party acquires that allows them to have access to a business's proprietary knowledge, processes, and trademarks in order to sell a product or provide a service under the business's name, a franchisor is a company which, or person who, grants franchises. It allows an individual to run a location of their business. The franchisor owns the overarching company including its trademarks, and products/services. However, it grants the franchisee the right to run the franchise location, in return for an agreed-upon fee.
