What is franchising in relation to a business model?

Franchising is fundamentally a business model where the franchisor licenses the rights to its trademark, business model, and operational methods to a franchisee. This arrangement allows the franchisee to operate a business that is aligned with the franchisor's established brand and systems.

In the context of the choices provided, the option regarding the whole of a business process being licensed to another company accurately encapsulates the essence of franchising. The franchisee does not just benefit from the brand name; they also gain access to the complete operational support and procedures that the franchisor has developed. This includes marketing strategies, training programs, and established customer service protocols.

The other options do not fully capture the characteristics of the franchising model. Franchising goes beyond just sharing resources, as it involves a comprehensive transfer of business practices and brand identity. It is also not merely a limited partnership for product distribution, as it encompasses a broader relationship defined by brand licensing and operational standards. Additionally, while a service agreement might outline terms of cooperation between two companies, it does not include the full scope of rights and responsibilities characteristic of a franchise relationship.

Overall, the definition of franchising emphasizes the transfer of an established business process, making the chosen answer the most precise representation