Select Service Partner (SSP) Group has operations in 30 countries involving food and beverage establishments, often in transit hubs such as airports and railway stations. SSP also operates Starbucks locations in airports in Finland, Sweden, and Norway. SSP pays Starbucks a royalty based on sales, as well as a fee for each store. In these instances, Starbucks is engaged in
A) direct exporting.
B) indirect exporting.
C) contract manufacturing.
D) foreign assembly.
E) franchising.

Question

Quizplus · Accepted Answer

SSP operates Starbucks locations and pays royalties and fees, which is characteristic of a franchising agreement where a company allows another to operate its brand in exchange for fees and royalties.

Select Service Partner (SSP) Group Has Operations in 30 Countries