Dietizza is a fast food network that makes low-calorie pizzas. As the firm 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

The concept illustrated here is franchising, as Dietizza allows entrepreneurs to set up outlets under its trademark and provides assistance in running operations in exchange for royalty payments and a percentage of profits.

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