What type of contract grants a franchisee the right to use the name and proven method of doing business?

Enhance your Quick Serve Restaurant management skills. Study with flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

A franchise agreement is the correct answer because it specifically outlines the terms under which a franchisee can operate a business under the franchisor's brand name and business model. This type of contract typically grants the franchisee the right to use the franchisor's trademarks, trade names, and established systems within a specific territory, as well as the support and training provided by the franchisor.

In contrast, a licensing agreement typically permits a licensee to use intellectual property but doesn’t usually involve a detailed operational framework or ongoing support from the licensor. A wholesale agreement pertains to the buying and selling of products in bulk, focusing on the distribution of goods rather than the operation of a branded business. A distribution agreement also involves the purchase and sale of products, detailing how a product will be distributed rather than providing a business model or brand use.

Thus, the franchise agreement is unique in its provision of a comprehensive business operation framework and brand utilization, making it the correct answer for this question.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy