Which of the following could be classified as a franchise?

a national fast-food chain owned and operated by a single organization
one of several unrelated laser tag companies in a region that are owned and operated by individuals
one of many daycare centers owned and operated by a single family
one of several hair salons owned and operated by individuals but licensed and supported by a single entity

1 answer

A franchise typically involves a business model where a franchisor (the parent company) allows a franchisee (an individual or entity) to use its brand, business model, and support systems in exchange for fees or royalties. Based on this definition, the option that could be classified as a franchise is:

one of several hair salons owned and operated by individuals but licensed and supported by a single entity.

This scenario implies a relationship where individual hair salon owners operate under the brand and guidance of a central entity, which is characteristic of a franchise system.