Cajun Chicken, a Growing Franchise Chain Based in Lafayette, Louisiana

question 106

Multiple Choice

Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States. Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries. Thus far, research has shown that the rights to use many of the firm’s recipes can be sold to other restaurants, cafeterias, and food stores. Cajun can also sell prepackaged food products, complete with spices, to other markets. At this point, whether to start by opening company-owned outlets or selling franchises is still a toss up. In any case, the long-term picture looks good.
-In granting franchise rights,Cajun would be the _____ and the buyer would be the _____.

• A)franchisee / franchiser
• B)franchiser / subsidiary
• C)parent / subsidiary
• D)franchiser / franchisee

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Definitions:

Sharks

A group of elasmobranch fish characterized by a cartilaginous skeleton, five to seven gill slits on the sides of the head, and pectoral fins that are not fused to the head.

People Per Year

A measurement or statistic that represents the number of individuals affected by or involved in a certain event or scenario on an annual basis.

Support Trees

Structures or physical supports used in agriculture and horticulture to support plants, vines, and trees to ensure proper growth and development.

Corresponds

To be in agreement or conformity with something else; often refers to having a direct relationship or correlation between entities.