The Tim Hortons chain accounts for more than half of all the donut and coffee stores in Canada. The chain's red-and-white store banners are fixtures in many Canadian communities. In 2001, the first Tim Hortons appeared in the United States through a contractual agreement allowing an independent operation to adopt Tim Hortons' entire way of doing business. This agreement is an example of a(n)________.
A) direct investment
B) franchise
C) export merchant
D) strategic alliance
E) joint venture

Question

Quizplus · Accepted Answer

The agreement between Tim Hortons and the independent operation in the United States is an example of a franchise, where the independent operation adopts the entire way of doing business of the franchisor (Tim Hortons).

The Tim Hortons Chain Accounts for More Than Half of All