What is a chain store? A) any franchise whatsoever B) one of multiple

QUESTION

What is a chain store?

A) any franchise whatsoever
B) one of multiple franchises owned by the same person
C) one of multiple franchises owned by the same partners, each of whom runs one store
D) a franchise in which franchisees are given the right to manufacture and distribute a certain product, following a formula or using supplies purchased from the franchisor
E) a franchise that allows the franchisee to use the trade name and format of a franchisor, following guidelines for marketing and pricing the product

ANSWER

Answer: E
Explanation: E) Also called a business-format franchise or a franchise outlet, a chain store is a franchise that allows the franchisee to use the trade name and format of a franchisor, following guidelines for marketing and pricing the product.