Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram. 
Definitions:
Franchise
A franchise is a type of business whereby a franchisee is given the license by a franchisor to operate under the brand's name and system.
Chain Contract
A legally binding agreement that links several parties in a series of contracts, often used in supply chains or franchising networks.
Due Diligence
An investigation or audit of a potential investment or product to confirm all facts, such as reviewing financial records, plus anything else deemed material.
Franchise Agreement
The legal contract that binds both parties involved in the franchise.
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