involves a _ involves a binding contractual agreement between a firm and another firm or individual whereby the business name an
d format have already been developed by the originating firm. Multiple Choice Exporting Franchising Joint venture Strategic alliancebinding contractual agreement between a firm and another firm or individual whereby the business name and format have already been developed by the originating firm.
In Franchising, a company who already has a successfully established brand give other people with the ability to open new branch by using that brand.
Example for this would be McDonald. McDonald operate under a franchising system, in which a person who have enough capital to provide building can pay a certain amount money to McDonald in exchange for permission to use its brand.
In most franchising system, the Franchiser usually impose a strict regulation regarding the format of the business. They do this in order to maintain the reputation of the brand.
