Anchor Hospitals entered into a long-term contract with Helium Health Care,and allowed it the use of its brand name.In return Helium Health Care paid a lump sum and also a percentage of future profits and agreed to abide by all rules and operating procedures laid down by Anchor Hospitals.This is an example of _____.

Question

Quizplus · Accepted Answer

Franchising is similar to licensing but tends to involve longer-term commitments. Also, franchising is commonly employed by service firms, as opposed to manufacturing firms. In a franchising agreement, the franchisor sells limited rights to use its brand name in return for a lump sum and share of the franchisee's future profits.

Anchor Hospitals Entered into a Long-Term Contract with Helium Health