Question

Franchise ownership means that:

Select one:

a. Each owner in the league must operate under a single set of guidelines

b. Each owners only owns a single (or part of a single) franchise

c. Each owners owns a percentage of the entire league

d. Each team is part of an overarching firm (league) that is publicly traded.

Answer 1

A franchisee or a franchise owner is someone who buys a business that is usually a part of a chain (e.g. Pizza Hut, Burger King etc),using the same name, product, trademark and services. The benefit of buying a franchise is the relationship with a successful business. Also, the franchisor provides on-going brand awareness and gives the franchise owner a successful and proven system to work with. All the firms under the franchisor operate with the same business model and also the same set of guidelines.

Thus, Franchise ownership mean that each owner in the league must operate under same set of guidelines.

Thus, Option A is the correct answer.