Tru-Shine is a cleaning company in the United States that offers various cleaning products and services.After gaining popularity in the United States,the company decided to expand its business in other American nations.The company entered into an agreement with some local cleaning companies in Canada where the local companies would sell its products and services under the same trade name.Tru-Shine also agreed to provide the training and necessary equipments and supplies to the local companies.In this example,the strategy used by Tru-Shine for entering foreign markets is an example of _____.

Question

Quizplus · Accepted Answer

The strategy used by Tru-Shine for entering foreign markets is an example of franchising. Franchising involves a company (franchisor) providing the rights to use its trade name, products, and services to another company (franchisee) in exchange for a fee and a percentage of the profits. This allows the franchisor to expand its business without taking on the financial risk of direct investment in a foreign market. The franchisor also provides training, equipment, and supplies to ensure consistency in quality and branding.

Tru-Shine Is a Cleaning Company in the United States That