In a franchising relationship a. the agent is the franchisor b. the principal is the franchisee c. the franchisor is the principal d. the franchisor is the agent

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.