DECA Sports and Entertainment Marketing Practice Exam

What is a sports franchise?

1. A ticket system for local sports events

2. An agreement for a sports organization to sell goods or services

3. A type of sponsorship agreement

4. A special event organized by a sports team

The correct answer is: An agreement for a sports organization to sell goods or services

A sports franchise refers to an agreement for a sports organization to sell goods or services, typically involving the operation of a professional sports team or the rights to operate the team within a specific league. This structure allows a franchise owner to market the team and its associated merchandise, as well as to promote events and services related to the sport. Franchises are integral to the business model of professional sports, as they enable leagues to maintain consistent branding and operational standards while allowing individual teams the autonomy to manage their affairs. In contrast, other options do not accurately reflect the concept of a sports franchise. While a ticket system for local sports events could be part of a franchise's operations, it does not capture the broader agreement and operational rights inherent in a franchise. A type of sponsorship agreement relates to financial backing or promotion rather than the ownership or operation of a team. Lastly, a special event organized by a sports team might be a function or marketing activity related to the franchise, but it is not what defines the franchise itself. Thus, the correct interpretation of a sports franchise lies in the agreement for a sports organization to sell goods or services, making option B the accurate choice.