Question

To avoid the difficulties involved in starting a business from scratch, Sana decides to obtain the rights to operate an outlet of a popular spa and salon chain. This business arrangement requires Sana to pay an annual fee to the owner of the chain. In this scenario, Sana is a(n)

Answer 1

Answer:

Franchisee

Explanation:

A franchise business is a form of business arrangement where a business owners , who is known as the franchisor , sells the right to operate its business to another entity known as the Franchisee.

This business arrangement is legally binding an it gives right to the use of the business name , logo ,and model to third party retail outlet.

This explains the type of business arrangement that Sana is planning , considering the explanation given in the question.

Answer 2

Answer: Franchisee

Explanation:

A franchisee is an individual or a firm that is given the license to do business by the franchisor under the franchisor's trade name, trademark, and business model. The franchisee buys a franchise from the franchisor.

What the franchisee is paying for is a business that is already established, operating strategy and marketing. Through the use of the company's existing presence, there will be a decrease in risk and quicker return on investment for the franchisee.

If Dana decides to obtain the rights to make use of an outlet of a popular spa and salon chain in order to curtail the challenges involved in starting the business from start, Sana is a franchisee.