Question

FitForLife Gym, a large U.S. based fitness center, receives royalty payments from WeWelness, a small Canadian company, for using its name and gym equipment. The FitForLife Gym brand is well known across the world and many fitness centers use its brand to attract customers. This form of agreement is an example of _____.

Answer 1

Licensing

Step-by-step explanation:

Licensing is a business agreement whereby one company gives authorization to another company to produce its product for a defined fee.

Licensing allows you to immediately tap current manufacturing, marketing and distribution systems which may have been built by other companies for decades.