Which statement is true about franchisors and franchisees?

• A. Franchisees agree to operate outlets in accordance with procedures prescribed by the franchisor
• B. Franchisors operate outlets according to the franchisees' procedures
• C. Franchisees can ignore franchisor procedures
• D. Franchisors do not influence branding

Answer: (A)

Franchise systems rely on standardized operations to protect the brand and ensure a consistent customer experience. The franchisee signs an agreement to run the outlet according to the procedures prescribed by the franchisor—this includes the operations manual, branding guidelines, pricing, supplier use, and quality controls. This alignment is what keeps the brand recognizable and maintains uniform quality across all locations, which is essential for customer trust and the system’s reputation. If a franchisee deviated from those procedures, it could dilute the brand and breach the contract, risking penalties or termination. The other statements don’t fit because they contradict how franchising is structured: the franchisor does not run outlets using the franchisee’s methods, franchisees cannot ignore the procedures, and branding is actively controlled by the franchisor to maintain consistency across the network.