Which of the following best defines a franchise?

The best definition of a franchise is a privilege to carry on public service. Franchising typically involves a business model where one party (the franchisor) grants another party (the franchisee) the rights to operate a business under its brand and business system. This often includes the use of trademarked materials, proprietary techniques, and operational support. In many cases, franchises operate within a specific market or regulatory framework that can often relate to public services or specific industries, such as food service or hospitality.

Understanding that a franchise often involves the granting of certain rights to provide services or products within a defined market helps clarify why this choice is appropriate. It emphasizes the relationship where a franchisee is given the privilege, as opposed to merely a license or a subsidy, to operate in a way that aligns with public service or business standards established by the franchisor.