What best describes a "franchise agreement"?

A franchise agreement is best described as a legal contract that permits a franchisee to operate under a franchisor's brand. This type of agreement establishes the terms under which the franchisee can use the franchisor’s established business model, trademarks, and support systems to conduct business. The franchisor typically provides key elements such as branding, training, and operational support, while the franchisee agrees to adhere to certain guidelines and pay fees, which may include initial franchise fees and ongoing royalties.

The essence of this relationship lies in the franchisor granting the franchisee the right to use its established brand and business practices, thereby enabling the franchisee to benefit from the franchisor's reputation and market presence. This contractual framework ensures consistency across the franchise locations while also allowing individual franchisees autonomy in their operations within the franchise system.

In contrast, the other options describe different types of agreements that do not capture the unique elements involved in a franchise arrangement. Sharing resources, leasing, or establishing a partnership involves distinct legal and operational structures that do not include the rights to leverage a brand or systemic business model as seen in a franchise agreement.