For an initial fee and royalties, Lemmongrass Inc. has licensed its entire business to an organization called Powersurge, located in another country. It has provided this organization with training and marketing assistance to successfully run the business. In this context, Powersurge is a(n) _____.
A)licensor
B)franchisee
C)joint venture
D)importer
E)wholly owned affiliate

Question

For an initial fee and royalties, Lemmongrass Inc. has licensed its entire business to an organization called Powersurge, located in another country. It has provided this organization with training and marketing assistance to successfully run the business. In this context, Powersurge is a(n) _____.
A)​licensor
B)​franchisee
C)​joint venture
D)​importer
E)​wholly owned affiliate

Quizplus · Accepted Answer

Powersurge is a franchisee because they have obtained the rights to use the Lemmongrass business model, training, and marketing assistance in exchange for an initial fee and royalties.

For an Initial Fee and Royalties, Lemmongrass Inc