What business arrangement allows someone to use another company's name, logo, and menu for a fee?

• A. Franchise
• B. Corporation
• C. Entrepreneur
• D. Head Chef

Answer: (A)

Franchising is the business arrangement that lets someone operate under another company's name, logo, and menu in exchange for a fee and ongoing royalties. The franchisor provides the established brand, recipes and operating systems, training, and marketing support, while the franchisee pays an upfront franchise fee and continues to pay royalties as they run the business. This setup gives the new owner a ready-made concept with brand recognition and a proven system, but it also requires following set standards to keep the brand consistent.

Other options don’t fit as neatly. A corporation is a legal structure that can own brands, not a specific arrangement to license a name and menu for a fee. An entrepreneur is someone starting a business independently, without using someone else’s brand. A head chef is a leadership role in a kitchen, not a licensing agreement to use another company’s branding.