CL Inc. an American fast-food chain enters into an agreement with Mars Corp., a British firm. According to the terms of the contract, Mars Corp. can use CL's brand name, image, logo and business format for a specified fee. This type of market entry is known as _____.

Question

Quizplus · Accepted Answer

The described market entry is franchising. Franchising allows a company to expand its operations without incurring high costs by allowing another party to use their brand name, image, logo and business format for a fee, while still maintaining control over certain aspects of the business.

CL Inc an American Fast-Food Chain Enters into an Agreement with with Mars