Question

John Diaz immigrated to Tallahassee, Florida from Cuba in the 1980’s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to the coffee shop. Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed leather chairs. Dark wood bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra. Coffee drinkers can take home a pound when they leave. If Diaz wanted to grow his business and granted another owner the rights to use his name, format, and approach to doing business, he would be involved in: Group of answer choicesbusiness format franchisingindependent retail operationnone of above

Answer 1

Answer:

Business format franchising.

Explanation:

Business format franchising is a type of business arrangement in which a franchisor confers the right to a franchisee to sell their goods and services. A franchisor provides support which enables the franchisee to function independently.

A major advantage of this type of business arrangement is that it enables the business to expand to different location. Franchising enables a business to maximise profit which would lead to the overall growth of the organisation.