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Which of the following is a form of franchising?

a. Direct investing
b. Licensing
c. Exporting
d. Countertrade
e. Barter trade

1 Answer

3 votes

Final answer:

Among the options given, licensing is a form of franchising where a person or entity (franchisee) buys the rights to operate a business using an established brand's model and receives support from the franchisor.

Step-by-step explanation:

The form of franchising among the given options is b. Licensing. A franchise is a business agreement where the franchisee is granted the right to start a business using the business model, trademark, and processes of the franchisor. The franchisee pays a franchise fee as well as ongoing royalty fees, and in turn, receives support and training from the franchisor. This arrangement allows for the rapid expansion of a business brand and can be a profitable way for entrepreneurs to start their own business with the backing of an established brand and business model.

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