Question

Kwan wants to open a new business in his own country, Singapore. He has decided on a form of licensing that will provide him with a standard package of products, systems, and management services in order to sell fast food to local residents. What is the form of business Kwan has chosen?

Answer 1

Franchising.

In this business model, the operating model has already been established. This model is copied by another identical business model that owns the creative rights. It is the know-how, that is, the process of management, operation, disclosure of the company is transferred to another store, which starts to operate in the same way as the others. A common example is MC Donald's, which has a strong brand worldwide and operates the franchise model.