Question

What role does a fast-food corporation play when it agrees to franchise its business? Check all that apply.

supply training
license a trademark
select a location
pay associated fees
supply advertising
collect most profits

Answer 1

- Supply training — Yes. Franchisors provide training, manuals and operational support to franchisees.
- License a trademark — Yes. Franchising grants the right to use the brand, trade name and trademarks.
- Supply advertising — Yes. Franchisors run/coordinate national advertising and provide marketing materials.

Not applicable:
- Select a location — No (franchisees usually find sites; the franchisor may approve or assist but typically doesn’t pick the site outright).
- Pay associated fees — No (franchisees pay initial and ongoing fees to the franchisor).
- Collect most profits — No (the franchisor collects fees/royalties, but the franchisee keeps most local operating profits).