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 North 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

Franchising is a strategy where a company (franchisor) allows another business (franchisee) to operate under its brand name, providing them with the business model, training, and necessary supplies, which is what Tru-Shine is doing by expanding into Canada through local cleaning companies.

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