A license to operate a hotel using a trademark or training and operating manuals supplied by a well-known chain is referred to as a/an

• A. Franchise
• B. License
• C. Brand license
• D. Affiliate agreement

Answer: (A)

Franchising is the arrangement that fits this description: a hotel operator runs a property under a well-known chain’s brand by using the chain’s trademark, training, operating manuals, and established systems. The franchisor provides the brand name, standardized procedures, ongoing support, marketing assistance, and access to the chain’s supplier networks, in exchange for fees and adherence to brand standards. This combination of brand use plus a complete operating framework is what distinguishes a franchise from a simple license or other types of agreements.

A license would typically grant permission to use a brand or intellectual property but not include the full operating system, manuals, or ongoing support needed to run the business to the chain’s standards. A brand license or an affiliate agreement can involve branding or partnership elements, but they do not inherently provide the comprehensive, ongoing operating system and training that a franchise offers.