One reason franchises have become so popular is that this arrangement provides the franchisee with:

• A. an established brand and proven business model
• B. ownership of the franchisor's entire company
• C. guaranteed profits regardless of market conditions
• D. complete independence from the franchisor's rules

Answer: (A)

Verified step by step guidance

1. Understand the concept of a franchise: A franchise is a business arrangement where the franchisee (individual or entity) is granted the right to operate a business using the franchisor's established brand, trademarks, and business model.
2. Analyze the benefits of franchising: Franchising provides the franchisee with access to an established brand, proven business model, training, and support from the franchisor, which reduces the risks associated with starting a new business.
3. Evaluate the options provided in the question: Ownership of the franchisor's entire company is not part of a franchise agreement. Guaranteed profits regardless of market conditions are unrealistic, as business success depends on various factors. Complete independence from the franchisor's rules contradicts the nature of franchising, which requires adherence to the franchisor's guidelines.
4. Focus on the correct answer: The key benefit of franchising is the access to an established brand and proven business model, which helps the franchisee operate the business more effectively and with reduced risk.
5. Conclude the reasoning: Based on the analysis, the correct answer is 'an established brand and proven business model,' as this aligns with the primary advantage of franchising.