Selling the rights to use a company's brand name in return for a lump-sum payment and a share of the buyer's profits is referred to as:
A) offshoring.
B) a joint venture.
C) exporting.
D) franchising.
E) royalty facilitation.

Question

Quizplus · Accepted Answer

In franchising,the company sells limited rights to use its brand name to franchisees in return for a lump-sum payment and a share of the franchisee's profits.Unlike most licensing agreements,the franchisee has to agree to abide by strict rules regarding how it does business.

Selling the Rights to Use a Company's Brand Name in Return