Question

Connection question. (1)Select one of the following terms, (stockholder, board of directors, acquisition, merger, or franchise) (2) Give a real-life example of how the term you selected relates to CURRENT business practices. (3) 100 words or more

Answer 1

Answer: Franchise: The franchise is a system of business where a franchisee (generally an entrepreneur) pays a fee along with the ongoing royalties to a franchisor for using his trademark or business idea along with the ongoing support. In this system generally the owner of a successful business idea (Franchisor) offers its trademark, support and expertise to another business (Franchisee) in return of fee and royalty. There are a number of such examples across the world. One such example is of Mc Donald’s which lends its franchisee to the people interested in starting a Mc Donald’s restaurant in return of a fee and ongoing royalty. Most of the Mc Donald’s restaurants across Globe are operating under this system.