Question

Luxere Hotels International, an American company, sells the rights to other hospitality companies globally to open hotels with the Luxere name for a fee and a share of the profit, in return for using Luxere's brand name and a package of materials and services. Luxere is engaged in:_______. a. franchising.b. importing.c. offshoring.d. exporting.e. counter-trading.

Answer 1

Answer:

a. franchising

Explanation:

A franchise involves a franchisor selling rights to their logo, name, and model to a third party called franchisee. The franchisee performs business for the franchisor and an agreed amount is paid.

Luxere Hotels International is engaging in franchising by selling rights to other hospitality companies globally to open hotels with the Luxere name for a fee and a share of the profit.