Pizza Hut has sold limited rights to use its brand name in return for a lump sum of money and a share of future profits to a group of business people in Hungary. So far, the Hungarian group has opened sixteen Pizza Hut restaurants in that Eastern European country. Pizza Hut used _____ to enter the international market.

Question

Quizplus · Accepted Answer

Franchising is similar to licensing but tends to involve longer-term commitments. In a franchising agreement, the franchisor sells limited rights to use its brand name in return for a lump sum and share of the franchisee's future profits.

Pizza Hut Has Sold Limited Rights to Use Its Brand