Hotel chains such as Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for a fee.
A) greenfield venturing
B) management contracts
C) strategic alliance
D) indirect exporting
E) direct exporting

Question

Quizplus · Accepted Answer

Management contracts are a type of licensing agreement where the franchisor provides the use of its intellectual property and manages the operations of the foreign hotel for a fee. This enables the franchisor to expand its brand presence globally without having to invest in property or carry operational risk. Hyatt is known for selling management contracts to owners of foreign hotels. Therefore, the correct answer is B.

Hotel Chains Such as Hyatt Sell a Variation of the Licensing