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horsena [70]
2 years ago
7

Sonic sells the rights to use the business name and sell its products and services to others in a given territory. This arrangem

ent is called a?
Business
1 answer:
Ket [755]2 years ago
5 0

Answer:

Sonic sells the rights to use the business name and sell its products and services to others in a given territory. This arrangement is called a franchise agreement.

Explanation:

The franchise agreement can simply be described as a legal agreement for binding of two or more companies. The agreement carries all the terms and conditions under which the two companies will work together. In such a kind of agreement, the owner of a business gives the rights of using the company name to another person or another company. The other company also gets the rights to sell products under the name of that company. In return, they agree to pay a commission or a part of their revenue as franchise fees.

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