Final answer:
Franchisees could be considered to be limited entrepreneurs because they have a contract with a franchising organization.
Step-by-step explanation:
Franchisees could be considered to be limited entrepreneurs because they have a contract with a franchising organization. This statement is True.
A franchise is a business model in which an individual or group purchases the rights to operate a business based on a proven and successful concept created by the franchisor. The franchisee may receive support and training from the franchisor, but they are still responsible for running the day-to-day operations of the business.
In return for the support and use of the franchisor's brand and business model, the franchisee typically pays a franchise fee and ongoing royalty fees.