Which of the following best defines a franchise?

A franchise is best defined as a business run by one firm under the name of another. In this model, the franchisor grants a license to the franchisee to conduct business using its brand name and operational structure. This relationship allows franchisees to benefit from the established reputation and recognition of the franchisor's brand while following specific guidelines and standards set by the franchisor.

Franchising is a common method for expanding a business, enabling the franchisor to grow their brand presence without bearing all the costs associated with opening new locations. The franchisee typically pays an initial fee and ongoing royalty payments in exchange for the right to operate under the established brand, access to resources, and support from the franchisor.

In contrast, the other options describe different business structures or relationships that do not align with the essential characteristics of a franchise. For instance, a large corporation operating solely describes a single entity without franchise involvement, and a business run by multiple owners independently suggests a partnership or cooperative model lacking the brand licensing aspect inherent in franchising. Lastly, a company managing multiple brands without partnerships is focused on brand management rather than the franchise relationship of cooperative branding.