Which of the following best describes a "franchise"?

B best describes a "franchise" because it specifically outlines the nature of the relationship between the franchisee and franchisor. A franchise involves a legal agreement wherein the franchisee is granted the rights to operate a business using the trademark, branding, and operational methods of the franchisor. This arrangement allows individuals to run their own businesses while benefiting from the established reputation and support system of an already successful brand.

The other options do not accurately capture the essence of a franchise. For instance, selling products directly to consumers does not encompass the cooperative business model that franchises represent. Additionally, while some franchises may involve government regulations, a franchise itself is not defined as a government-regulated enterprise. Lastly, a startup company with no prior connections does not reflect the established nature and brand recognition that come with franchising, which distinguishes it from new, independent business ventures. Understanding these distinctions helps clarify what a franchise truly entails in the context of entrepreneurship.