Which term refers to a store that uses another company's name?

• A. Franchise
• B. Franchisee
• C. Franchisor
• D. Establishment

Answer: (A)

Franchising is the idea that a business owner licenses an established brand, its products, and operating system to independent operators who run stores under that name. So a store that uses another company’s name is considered a franchise because it’s part of that branded network and follows the franchisor’s system.

The operator of the store is the franchisee, who pays for the rights and typically royalties or fees. The brand owner and support provider is the franchisor. A generic establishment is just any business and doesn’t imply the use of another company’s name or a licensed brand.