Which of the following is an example of franchising?
A) An Italian clothing company opens factories in China and Bangladesh to reduce manufacturing costs.
B) A U.S-based quick-service restaurant gives rights to another business to use its entire business system in exchange for compensation and royalties.
C) A U.S.-based animation company allows factories in China to use their famous cartoon character on mugs and stationery.
D) A Germany automobile manufacturer opens an office in the Philippines for its customer care operations.

Question

Quizplus · Accepted Answer

Franchising involves a business (franchisor) allowing another business (franchisee) to operate using its brand, systems, and processes in exchange for fees or royalties. Choice B describes this arrangement, where a quick-service restaurant grants another business the rights to use its business model and brand.

Which of the Following Is an Example of Franchising