Question

Pinetops Resorts, an American company, sells the rights to other hospitality companies globally to open resorts with the Pinetops name for a fee and a share of the profit, in return for using Pinetops' brand name and a package of materials and services. Pinetops is engaged in 10) ______A) offshoring.B) franchising.C) exporting.D) countertrading.E) importing.

Answer 1

Answer:

B) franchising

Explanation:

Franchising is a business model where a popular business owner, the franchisor allows an interested investor, the franchisee, to establish and operate an independent business under the franchisor brand's name. The franchisee gets a license to operate the business with the brand name, logo, colors, systems, offer similar products and services, and similar prices as the franchisor.

A franchise business may be expensive to start due to the many requirements, including the franchisee fee. However, it has a higher chance of success as it adopts the name and systems of an already popular and successful business. By selling licenses to other entities to open and run under business and its brand name, Pinetops Resorts is engaging in the franchising business.