What defines a franchise company?

A franchise company is characterized by its business model, which involves offering a combination of trademarked brand identity, a central reservation system, ongoing support, and training to its franchisees. In this arrangement, the franchisor provides the franchisee with the rights to use its brand, and in return, the franchisee pays royalties or fees. This model allows individuals to start their own businesses while benefiting from an established brand and the systems put in place by the franchisor.

The central reservation system provided by franchise companies typically includes standardized procedures, marketing strategies, and operational guidance, which helps ensure consistency across all locations. This not only aids franchisees in managing their businesses effectively but also enhances the overall brand reputation in the marketplace.

Other options describe different types of business structures and services but do not encapsulate the essence of what defines a franchise company. For instance, some options focus on ownership, storage, or leasing aspects which do not relate to the franchising model where brand licensing and corporate support play crucial roles.