The type of business that Fernando and Juanita have decided to start is called a franchise.
A franchise, also known as franchising, is a method of marketing products or services where a franchisor develops the brand's trade name and business model and a franchisee pays a royalty and frequently an upfront fee to have the right to use the franchisor's name and system. Therefore, Fernando and Juanita have decided to start a franchise.
The most valuable asset of a franchisor is its brand, and consumers base their decisions about which stores to frequent and how frequently they visit those stores on what they know or believe they know about the brand. Customers, to a certain extent, don't really care who owns the company as long as their expectations for the brand are met.
To know more about a franchise, refer to the following link:
https://brainly.com/question/3687222
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