Which type of business arrangement allows someone to operate under the guidance of a larger company?

Franchising is a business arrangement that enables an individual or group to operate their business under the established brand and operational model of a larger, more recognized company. In this setup, the franchisor provides the franchisee with an operating system, brand support, and ongoing assistance, including marketing, training, and product supply, which helps the franchisee to succeed.

The franchisee benefits from reduced risk compared to starting an independent business, as they are using a proven business model with established processes. This relationship allows for brand recognition and customer loyalty, which can be more challenging for new businesses to develop on their own. The franchise agreement typically includes specific terms regarding operation standards, fees, and the use of intellectual property, ensuring that the franchisee adheres to the franchisor's guidelines for maintaining brand integrity.

In contrast, an agent agreement typically involves a person who acts on behalf of another party to facilitate transactions but does not provide the same level of operational framework or support as franchising. Exporting involves selling goods produced in one country to customers in another, which does not include operational guidance or brand association. A joint venture is a collaborative agreement where two or more parties create a new business entity, sharing resources and risks, which also differs significantly from the franch