A clothing line company has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of the clothing line after paying a fee to the clothing line company. They also pay a part of their revenue to the clothing line. This is an example of:
A) franchising
B) exporting
C) differentiation
D) retail expansion
E) brand dilution

Question

Quizplus · Accepted Answer

This is an example of franchising, where private individuals operate outlets using the brand name and products of a company in exchange for fees and a share of revenue.

A Clothing Line Company Has a Number of Outlets Which