High School

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Fashion brand companies that sell the use of their names/brands to other companies to put onto merchandise are known as _______.

A. Store brands
B. Manufacturers
C. Fast fashion
D. Licensors
E. Contractors

Answer :

Final answer:

Fashion brand companies that sell the use of their names/brands to other companies to put onto merchandise are known as licensors. They license their brand to other businesses, allowing these businesses to produce and sell products under their name, and they receive royalties in return. Option D is correct.

Explanation:

In the context of business, fashion brand companies that sell the use of their names/brands to other companies to put onto merchandise are known as licensors. Licensors essentially lease the rights to their brands to another entity or licensee. This is a common practice in the fashion industry where a well-known brand grants permission to another company to produce and sell products under their brand name.

For instance, a high-end fashion brand might license its name to a manufacturer, allowing the manufacturer to create a line of eyewear or fragrances under the brand's name. The brand receives royalties from the licensee for the use of its name, thereby earning profits without having to deal with the production, distribution, and marketing of these additional products.

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