What business model involves using the name and logo of an existing successful business for a fee?

The correct answer is centered around the concept of franchising, which is a popular business model that allows individuals or groups to operate their businesses under the established brand of an existing company. In a franchise arrangement, the franchisee pays a fee to the franchisor for the right to utilize their trademark, brand name, and operational systems. This model encourages brand consistency and allows franchisees to benefit from the established reputation and customer base of the franchisor, thereby increasing the likelihood of success compared to starting an independent business.

Franchising typically includes support and training provided by the franchisor, which can be instrumental in helping franchisees to operate effectively and adhere to brand standards. This relationship fosters a mutually beneficial partnership, where the franchisor expands their brand presence and the franchisee gains access to a proven business model along with marketing assistance and operational guidelines.

The other options relate to different forms of business relationships. Licensing involves granting permission to another party to use specific intellectual property, but it does not typically include the operational support and brand identity that comes with franchising. Mergers and joint ventures are collaborative business strategies between two or more entities to achieve common goals or explore new opportunities, rather than providing an independent business with a ready-made brand and system. Each of