McDonald's has outlets in Japan. McDonald's provides the Japanese operation with the rights to use McDonald's name, material, and processes, but the operation is owned and managed by Japanese. The Japanese operation would be considered a(n) __________.*

Question

Quizplus · Accepted Answer

The given scenario describes a franchise, where a company (in this case, McDonald's) grants the right to use its name, branding, and system to another party (in this case, the Japanese operation), in exchange for fees or royalties. The franchisee (Japanese operation) is responsible for financing, staffing, and running the business.

McDonald's Has Outlets in Japan