Razak's, a Popular Chain of Fast-Food Restaurants in the Middle

Multiple Choice

Razak's, a popular chain of fast-food restaurants in the Middle East, plans to expand its market in Asia and signs a contract with an Indian firm. The contract allows the firm to set up restaurants with Razak's name and trademark and use the supplies provided by Razak to make its products. Under the contract, the Indian firm is required to adhere to the same cooking procedures and use the same equipment that are used by other outlets of the restaurant. The given scenario exemplifies a _____.

A) sole proprietorship
B) distributorship
C) business format franchise
D) conglomerate merger