What is a franchise, and what is a common benefit and cost?

What is a franchise, and what is a common benefit and cost?

• A. Franchise is a nonprofit entity; benefit: tax exemption; cost: none.
• B. Franchise is a standalone business with no branding; benefit: independence; cost: none.
• C. Franchise is a business model where a franchisee operates under franchisor’s brand and system; benefit: established brand and support; cost: ongoing royalties and strict operating requirements.
• D. Franchise is a joint venture with equal ownership; benefit: shared control; cost: shared profits.

Answer: (C)