Select the correct answer.

Which franchise aspect distinguishes it from a chain?

O A. the owner owns the name

OB. the owner owns only some of the units

Oc. the owner sets the standard procedures

OD. the owner retains the profits

OB. the owner owns only some of the units

Explanation:

A franchise is a business model where a franchisee acquires a license from the franchisor to operate a similar business to the franchisor. The franchisor owns the popular business and authorities the franchisee to establish an independent but outlet. The franchisee acquires rights to the business name, products, services, logo, brand name, and systems from the franchisor.

A franchisee business operates as a branch of the franchisor business. The only difference is that a franchisee is owned and managed by an independent investor. In the chain store, all the branches are owned by the same entity or investor. The franchisor does not own all the outlets that operate with his brand name.