Which term refers to a business that trades under another company's brand while paying fees?

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Multiple Choice

Which term refers to a business that trades under another company's brand while paying fees?

Explanation:
Franchising is the idea being tested. In a franchise, the franchisee runs a business using the brand, systems, and support of the franchisor in return for fees or royalties. The key phrase is trading under another company’s brand while paying fees to use its name, marketing, and proven business model. This fits because the other options don’t describe this arrangement: an online business can be independent and isn’t inherently tied to another brand; limited liability is about the legal protection of owners, not branding or fees; and a mutual organisation (co-op) is owned by its members and operates differently from a branded franchise.

Franchising is the idea being tested. In a franchise, the franchisee runs a business using the brand, systems, and support of the franchisor in return for fees or royalties. The key phrase is trading under another company’s brand while paying fees to use its name, marketing, and proven business model.

This fits because the other options don’t describe this arrangement: an online business can be independent and isn’t inherently tied to another brand; limited liability is about the legal protection of owners, not branding or fees; and a mutual organisation (co-op) is owned by its members and operates differently from a branded franchise.

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