Which of the Following Best Describes a Business Format Franchise

Multiple Choice

Which of the following best describes a business format franchise?

A) It is a broad franchise agreement in which a franchisee pays for the right to use the name, trademark, and production methods of a franchisor.
B) It is a type of franchising arrangement in which a franchisor makes a product and licenses a franchisee to sell it.
C) It is a type of franchising arrangement in which a franchisor shares ownership with a franchisee by selling a number of its shares.
D) It is a broad franchising agreement in which a franchisee pays a franchisor for the right to use the production methods of the franchisor and functions under a different name and identity.