Final answer:
A franchise is a type of license that allows an entrepreneur to trade under the name of a business.
Step-by-step explanation:
A franchise is a type of license purchased by an entrepreneur that allows the entrepreneur to trade under the name of that business.
A franchise is another way to begin a business by purchasing the rights to start a business based upon a model designed by the franchisor, who in many cases provides training, supply chain support and support in setting up operations. In return, the franchisee pays a franchise fee, as well as royalty fees to the franchisor.
Fast food restaurants like McDonald's were some of the first franchises.