A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called
A) a joint venture.
B) contract manufacturing.
C) direct licensing.
D) franchising.
E) a strategic alliance.

Question

Quizplus · Accepted Answer

The description provided in the question point towards franchising as the correct option. In franchising, a company (franchisor) grants another company (franchisee) the right to market and distribute its product in accordance with certain standards and guidelines in exchange for a financial commitment. The franchisee gets to use the franchisor's brand name, logo, and business model, while the franchisor receives ongoing royalties and fees from the sale of its products.

A Special Form of Licensing in Which One Company Grants