Future Business Leaders of America (FBLA) Hospitality Management Practice Test

What type of business has more than one location with the same name under the same ownership?

1. Franchise

2. Chain

3. Independent

4. Partnership

The correct answer is: Chain

A business that has more than one location with the same name under the same ownership is referred to as a chain. Chains are characterized by having a standardized brand and operational procedures across their multiple establishments, which allows for consistency in service and product offerings. This model supports efficient management and adaptability in branding, marketing, and customer experience across locations. In contrast, a franchise involves a different structure where an individual or group operates a business using the branding and operational systems of a parent company but is owned independently. Therefore, while franchises may have multiple locations, they are not necessarily under the same ownership as a chain. An independent business operates as a unique entity without ties to a corporate name or brand, and partnerships pertain to the legal relationship and collaboration between two or more individuals in business, which does not inherently imply having multiple locations or shared branding.