Which of the following is listed as an example of a franchise?

• A. Kumon
• B. Tesla Motors
• C. Walmart
• D. Nike

Answer: (A)

Franchising is a system where a franchisor licenses its brand, business method, and ongoing support to independent owners who run individual outlets under the same name, paying fees and royalties and following shared standards. Kumon fits this model because it operates a global network of learning centers owned and run by franchisees who use Kumon’s curriculum and branding, with the franchisor providing training, materials, and ongoing guidance. The other options don’t fit the typical franchise structure: Tesla Motors mainly sells directly through company-owned channels rather than franchised outlets; Walmart runs company-owned stores rather than a franchise network; Nike relies on a mix of company-owned stores and licensed products but not a standard franchise system in the traditional sense.