Franchise/Franchising
Business model where franchisee operates business using franchisor's brand/systems for fee/royalty.
Real World
McDonald's operates through franchising: individual franchisees pay an upfront fee and ongoing royalties (around 5% of sales) to use McDonald's brand, supply chain, and training systems.
Exam Focus
Always evaluate both sides — franchisor and franchisee — when 'assess' or 'justify' questions ask about franchising as a growth method.
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