Good Patties is a chain fast- food hamburger restaurant that wants to expand into a foreign market. The managers of Good Patties are most concerned about the financial commitment and desire to keep the potential cost as low as possible. Which of the following entry methods is most likely to address the managers' financial concerns?

Question

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Franchising is a more cost-effective option for expansion into a foreign market as costs such as real estate, equipment, and labor are covered by the franchisee. The franchisee also typically pays an initial franchise fee and ongoing royalties, which provides a stream of revenue for the franchisor without taking on a significant financial commitment. This option would address the financial concerns of the Good Patties managers.

Good Patties Is a Chain Fast- Food Hamburger Restaurant That