A local gym sold rights to its name and resources to another company. This is an example of what type of business structure?

The scenario described, where a local gym sold rights to its name and resources to another company, is indeed an example of franchising. In a franchising arrangement, the franchisor (the gym, in this case) grants the franchisee (the other company) the rights to use its established business model, brand name, and resources in exchange for fees or royalties. This allows the franchisee to operate under the franchisor's established brand while benefiting from the franchisor's marketing and operational support.

In this context, franchising typically involves the franchisor providing training, marketing materials, and ongoing support to the franchisee, enabling the latter to replicate the successful business practices of the original brand. By selling rights to its name and resources, the gym is leveraging its existing reputation and expertise, which is a fundamental aspect of franchising.

The other option types represent different business structures. A subsidiary refers to a company that is completely or partially owned and controlled by another company, a merger involves the combination of two companies into one, and a joint venture is a collaborative enterprise in which two or more parties agree to combine resources for a specific project while remaining independent entities. These structures do not align with the gym's sale of franchising rights, which is specifically