Al also suggested another way Jenna could finance her expansion.He described setting-up a chain of AutoMotion Garages by selling the rights to use AutoMotion's name,business model,garage design and service ideas to others who would like to own a similar shop.These individuals would pay AutoMotion an initial fee and monthly royalties based on earnings.Al is suggesting that Jenna set up a:
A)Joint venture.
B)Franchise arrangement.
C)C corporation.
D)Master limited partnership.

Question

Quizplus · Accepted Answer

Al is suggesting a franchise arrangement where AutoMotion would sell the rights to use its name, business model, and service ideas to others who would like to own and operate a similar shop. In return, the franchisees would pay an initial fee and ongoing royalties based on their earnings. This is a common way for successful businesses to expand without having to finance the new branches themselves.

Al Also Suggested Another Way Jenna Could Finance Her Expansion