Flaira, a high-end clothing brand in Florida, signs a licensing agreement with a firm in Honolulu to allow the latter to use Flaira's brand name, trademark, and business methods to operate the same clothing business in Honolulu. In exchange, the Honolulu firm has to pay the owner of Flaira an annual fee. This scenario is an example of a(n) _____.

Question

Quizplus · Accepted Answer

This scenario is an example of a franchise, where Flaira allows another firm to use its brand name, trademark, and business methods in exchange for an annual fee.

Flaira, a High-End Clothing Brand in Florida, Signs a Licensing