What does franchising involve in a business context?

Franchising in a business context involves licensing the entire business process to another company. This means that a franchisee buys the rights to operate a business using the brand, operational strategies, support, and marketing techniques of the franchisor. The franchisee not only sells the products but also utilizes the established business model, training, supplies, and ongoing support provided by the franchisor. This comprehensive arrangement includes guidelines on how to run the business effectively while maintaining brand consistency across different locations.

The other options do not capture the full essence of franchising. Licensing technology to a foreign partner refers only to the transfer of specific technological know-how and does not encompass the broader operational aspects that franchising entails. Partnering without legal agreements is not representative of franchising, as franchising relies heavily on formal contracts to define the relationship and responsibilities of both parties. Selling products without support also fails to reflect the franchising model, which typically includes extensive support and operational training for franchisees to ensure success.