Hydralicious, a juice parlor, has been looking to expand its business.The company has given a few entrepreneurs in different locations the license to operate under its name.The entrepreneurs are given the permission to use the company's reputation and the business model to run operations.The entrepreneurs will be charged a fee but will also get a percentage of the profits made.Which of the following strategies is Hydralicious most likely to be using ?
A)Chaining
B)Horizontal merger
C)Vertical merger
D)Franchising
E)Centralization

Question

Quizplus · Accepted Answer

The given scenario describes the concept of franchising, where a company allows entrepreneurs to operate under its name and business model in exchange for a fee and a percentage of profits.

Hydralicious, a Juice Parlor, Has Been Looking to Expand Its