Question

Provide a scenario where a company would enter a foreign market using the franchising modal

Answer 1

Under Franchise model a firm would enter into other nation and provide the rights to sell the goods under its brand name to a local resident of the foreign country. Because the firm might find difficulties in understanding and running as per the needs of the local area but wants to expand its business, the firm would charge an initial upfront fee to get the franchise and letter the revenue sharing would be upon the mutual agreements
For example MC Donalds has presence in over 119 countries through franchise model.