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 ina. franchising b. importing c. offshoring d. exporting e. countertrading

Question

Isaiah Molina

Business

11 January, 09:02

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 ina. franchising b. importing c. offshoring d. exporting e. countertrading

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Answers (1)

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Konnor Pratt · Answer 1

Luxere is engaged in a. Franchising

Explanation:

Franchising is an agreement between two parties or companies, say company A and company B, where company A is the business owner and company B wants to acquire company A's business rights and trademark.

Company B will go to company A and offer to acquire some level of access to the business in return for a fee known as licensing fees.

As can be observed in the question above, Luxere Hotels is carrying out Franchising in order that itself (the franchisor) and the other hospitality companies (the franchisees) will both share in the profits of the agreement.