Dietizza is a fast food network that makes low-calorie pizzas.As the finn wishes to expand its operations in different locations, it has licensed a few entrepreneurs to open Dietizza outlets under the company's trademark.The entrepreneurs will take up the responsibility of costs while Dietizza will assist them in running operations.The company will receive royalty payments and a percentage of profits from the entrepreneurs.Which of the following concepts is illustrated here?
A)Exporting
B)Franchising
C)Setting up of a wholly owned subsidiary
D)Strategic alliance
E)Joint venture

Question

Quizplus · Accepted Answer

This scenario describes franchising, which is when a company licenses its brand name and business model to entrepreneurs who run their own businesses while paying fees to the franchisor. The franchisor provides support and guidance to ensure consistency among all franchise locations while collecting royalties and a percentage of profits.

Dietizza Is a Fast Food Network That Makes Low-Calorie Pizzas