Franchise vs

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Questions and Answers

What is a franchise?

A type of large corporation that operates independently and pays royalties to the parent company
A business model that does not benefit from the reputation of the parent company
A business structure that is completely different from corporations and operates similarly
A type of small business that is a clone of a successful standalone business and pays fees to the parent company (correct)

What does a franchise store benefit from?

No support from the parent company for branding and advertising
Limited association with the parent company to maintain uniqueness
Independent operation and complete control over branding and advertising
Reputation of the parent company and support with branding, advertising, and employee training (correct)

Can corporations be franchises?

Franchises and corporations are the same thing
No, corporations are not allowed to operate as franchises
Franchises cannot be part of corporations
Yes, corporations can establish franchises as part of their business expansion (correct)

What is the relationship between a franchise and a parent company?

The franchise pays fees to the parent company and benefits from its reputation and support (B) Signup and view all the answers

How do franchises differ from corporations?

Franchises replicate a successful standalone business and pay fees to the parent company, while corporations operate independently (D) Signup and view all the answers