Franchises like Orangetheory Fitness or Chick-fil-A fall under the category of business format franchising since the franchisee adheres to the business model established by the parent company.
Enterprise Format The type that is most recognizable is franchising. In a franchise for a business model, the franchisor offers the franchisee not just its brand name, goods, and services, but also a full system for running the enterprise.
In this kind of franchising, the franchisor grants the franchisee access to his designs, quality assurance, accounting systems, operational procedures, group advertising and promotions, and training.
As a result, a franchise company frequently has stronger branding and advertising than a typical company. Additionally, since all franchisees in a franchise business split any advertising or sales costs, the overall cost of sales is cheaper in the franchise model.
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