The correct choice is the franchise model, which is characterized by a parent company that grants rights to smaller subsidiary operations to conduct business under its brand. In a franchise system, the franchisor (the parent company) provides the franchisee (the subsidiary operation) with a business model, branding, and support in exchange for fees or a percentage of revenue. This structure allows for brand expansion while maintaining control of the overall brand umbrella.
In contrast, a partnership involves two or more individuals or entities who collaborate to conduct business together, sharing profits, losses, and responsibilities, but does not inherently create a hierarchical structure with a parent and subsidiaries.
A joint venture also comprises two or more parties who come together to undertake a specific business project or achieve a particular goal, typically for a limited period of time, without establishing a long-term parent-subsidiary relationship.
A corporation is a legal entity that is separate from its owners and can have multiple shareholders, but it does not specifically denote the relationship between a parent organization and smaller operational units in the same way a franchisee-franchisor relationship does.
Thus, the franchise structure distinctly embodies the element of a parent company overseeing smaller operations that function under its branding and practices, making it the appropriate definition in this context