In retail, what kind of license allows a business to use another company's brand and products?

The concept of franchising is fundamental in retail, as it allows a business to operate under an established brand while utilizing the brand's various resources, including products, business models, and marketing strategies. A franchise agreement typically grants the franchisee (the business owner) the rights to sell the franchisor's (the brand's) products and services in exchange for an initial fee and ongoing royalties. This arrangement not only provides the franchisee with a recognizable brand name and a successful business model but also gives them access to training, support, and operational guidelines that help ensure the franchise's ongoing success.

In contrast, a joint venture involves two or more parties agreeing to combine resources for a specific project or business activity, sharing both profits and risks, but not necessarily licensing a brand. A partnership is a business structure where two or more individuals or entities share ownership and responsibilities, which does not inherently involve licensing another brand. Lastly, a merger occurs when two companies combine to form one entity, typically resulting in a significant restructuring of the brands involved, rather than allowing one to utilize the other's specifically defined brand and products. Thus, franchising stands out as the correct term for this particular arrangement in retail.