Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then Tricon has opened 6,000 KFC restaurants abroad. It has 158 in Indonesia and more than 500 restaurants in China. All are locally owned, and the owner pays a fee to Tricon. Tricon is engaged in A. contract assembly. B. a joint venture. C. contract manufacturing. D. a partnership. E. franchising

Question

Douglas Brown

Business

18 March, 17:40

Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then Tricon has opened 6,000 KFC restaurants abroad. It has 158 in Indonesia and more than 500 restaurants in China. All are locally owned, and the owner pays a fee to Tricon. Tricon is engaged in A. contract assembly. B. a joint venture. C. contract manufacturing. D. a partnership. E. franchising

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Anderson Shaffer · Answer 1

E. Franchising

Explanation:

Franchising is the process whereby a franchisor (owner of the business) give license on technical know how, procedures, intellectual properties, brand and so on to a franchisee (the person receiving the license operating the business on his/her own). Franchising is a type or form of licensing. It is a marketing method of expansion and distribution of product and services. In this case, Tricon, owners of KFC (franchisor) gave licenses to various other local businesses (franchisees) around the world who in return for the license to use intellectual property and so on pay a fee tricon.