One reason franchises have become so popular is that this arrangement provides the franchisee with: a nationally recognized name and product. a low cost way to start a business. limited liability. the right to retain all profits earned by their franchise.

This arrangement provides the franchisee with "a nationally recognized name and product."

Explanation:

A Franchise arrangement is one in which a Franchisor (the owner of a business) and a Franchisee sign an agreement after which it gives the Franchisee access to its brand name, operational procedures and business model, and the Franchisee pays the Franchisor fees and royalties as agreed.

Both the Franchisor and Franchisee benefit from a franchising agreement.

The Franchisor gets to expand its business without incurring much costs, while the Franchisee, rather than starting with an unknown brand name gets an advantage of operating under the Franchisor's recognized brand name and product.

An example of a franchise organization is McDonald's.