A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules is called

Franchise

Explanation:

A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules is called franchise.

For instance, Mr Biggs could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.

Hence, franchise is a license that allows individuals or group of people knowledge, processes, trademarks to provide a service.

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answer; institution based;