The best theory or model that represents Coca-Cola’s internationalization strategies is the
franchising model. According to Mok, Dai and Yeung (2002), franchising is a strategy where
a franchising company licenses copyrights, trademarks, and technology to the franchisee.
Most distribution channels of coca cola around the world are operated as franchises as they
use trademarks and Coca Cola’s technology to produce and distribute products branded Coca
Cola. Under franchising agreements, the franchisees normally pay Coca-Cola (Franchiser) a
purchase or license fee, annual fees, and a percentage of the profits and sales. In return, the
franchisor provides initial training, start-up packages, operations manual, and a trademark
license
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