Which of the following is NOT a characteristic of a franchise?

The notion that a franchise is a tangible product is not accurate because a franchise is fundamentally a business model rather than a physical item. A franchise encompasses a contractual relationship where a franchisor grants the franchisee the right to operate a business under the franchisor's trademark and methods. This relationship can involve selling tangible products, offering services, or both, but the franchise itself is not a product. It's a system that leverages brand loyalty and operational support.

Factors such as the independent selling of products, which is characteristic of franchises, indicate that the franchisee has the autonomy to operate the business within the guidelines established by the franchisor. The requirement for royalty payments is also a core aspect of franchising, where the franchisee pays fees for the continued use of the franchisor's brand and business model. Lastly, the relationship between the franchisor and franchisee is central to the franchise structure, establishing rights and responsibilities for both parties.