Hydralicious, a juice bar, has been looking to expand its business. The company has given a few entrepreneurs in different locations the license to operate under its name. The entrepreneurs have permission to use the company's reputation and the business model to run operations. The entrepreneurs will be charged a fee, but they will also get a percentage of the profits. Which of the following strategies is Hydralicious most likely to be using?
A) Chaining
B) Horizontal merger
C) Vertical merger
D) Franchising
E) Centralization

Question

Quizplus · Accepted Answer

Hydralicious is most likely using the strategy of franchising. Franchising involves giving entrepreneurs the right to use a company's name, reputation, and business model in exchange for a fee and a percentage of profits. This allows for expansion without having to invest in opening and operating new locations themselves, while also maintaining control over the brand and business model.

Hydralicious, a Juice Bar, Has Been Looking to Expand Its