High School

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Midas Muffler sells franchises to prospective businesspersons who want to use the Midas name and offer Midas products. In a franchise arrangement, Midas would be the __________, and the buyer of the franchise is the __________.

A. owner; limited partner
B. co-signer; co-signee
C. franchisor; franchisee
D. franchisee; franchisor

Answer :

Answer:

C. Franchisor; Franchisee

Explanation:

Franchising

This represents a Business Arrangement where licenses are given to other individuals or businesses by a business owner to trade its products and use its business name. The rights given to use a business owner's trademarks, logos, business systems, products and name. A franchising fee is usually paid in order to be part of a franchise. Businesses that usually run franchises include restaurants, salons and retailers among others.


In a francise, the Franchisor represents the owner of business model, franchise or the trade marks to products. The Franchisee represents the business or individual permitted to use the franchisor's business model, name, products or trademarks.

In the particular question, Midas is the Franchisor and the buyer of the franchise is the franchisee

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