Question

A contractual arrangement under which the franchisor grants the franchisee the right to sell certain products, to perform specific services, or to use certain trademarks or trade names, usually within a designated geographic area.Companies record as _operating_ expenses annual payments made under a franchise agreement in the period in which they are incurre

Answer 1

The Franchiser under the franchise contract allows the franchisee to sell products and services under its business name.

Explanation:

• A franchise can be defined as a type of contractual arrangement or license that a party (Franchisee) acquires which allows the franchisee to have access to the proprietor's knowledge, process, and trademarks.
• whenever a business house intends to expand its geographical reach by incurring less expense it creates a franchise for its product and services