What does franchising primarily allow franchisees to do?

Franchising primarily enables franchisees to utilize a franchisor's name and business format, which is a key benefit of entering into a franchise agreement. By doing so, franchisees gain access to an established brand with a recognized reputation, operational procedures, marketing strategies, and a proven business model. This can significantly reduce the risks associated with starting a new business, as franchisees can leverage the existing customer base and brand loyalty rather than starting from scratch.

The other choices relate to different aspects of business operations but do not accurately capture the essence of franchising. Establishing their own brand, for instance, suggests creating a new identity, which contradicts the fundamental concept of franchising where the franchisee operates under the franchisor's established brand. Negotiating terms independently is often limited in franchising because franchise agreements typically have set structures that franchisees must adhere to. Finally, while cost management in supply chains is a consideration for any business, franchising specifically centers around leveraging the franchisor's systems rather than focusing on cutting costs in that area.