Franchise/Franchising
Business model where franchisee operates business using franchisor's brand/systems for fee/royalty.
Real World
McDonald's operates over 40,000 franchises globally — individual franchisees pay a fee to use McDonald's brand and systems, letting McDonald's grow rapidly without funding each outlet itself.
Exam Focus
State whose perspective you are analysing (franchisor or franchisee) before evaluating advantages — examiners reward precision.
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