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________ obligates a firm to provide a specialized sales or service strategy, support assistance, and possible an initial investment in exchange for periodic fees.

a. Licensing
b. A joint venture
c. International trade
d. Franchising
e. None of these choices are correct.

1 Answer

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Final answer:

Franchising is the business model that requires a firm to provide a specialized sales or service strategy, support, and possibly an initial investment in return for periodic fees, which includes an initial franchise fee and ongoing royalty fees.

Step-by-step explanation:

The correct answer is d. Franchising. This business model obligates a firm to provide a specialized sales or service strategy, support assistance, and possibly an initial investment in exchange for periodic fees. A franchise involves purchasing the rights to start a business based on a model designed by the franchisor. In return, the franchisee typically pays an initial franchise fee and ongoing royalty fees.

Examples of franchises include well-known fast food restaurants like McDonald's. Franchise agreements often include training, supply chain support, and assistance in setting up operations, which help ensure consistency and quality across various locations.

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