Limonelle Corporation owns the secret formula for a popular beverage brand,Limonelle.The corporation operates through franchises in over 50 countries.It uses a secret formula to prepare the drink concentrate that is dispatched to the franchises world over.These franchises then prepare and bottle the beverage for distribution.Which type of franchise has Limonelle adopted?

Question

Quizplus · Accepted Answer

Limonelle Corporation has adopted a processing plant franchise model, where the franchisor provides a secret formula or necessary ingredient to the franchisee, who then manufactures and distributes the product. This is evident from the description of Limonelle's operation, where the corporation provides the secret formula for the beverage concentrate to its franchises, which then prepare and bottle the beverage for distribution.

Limonelle Corporation Owns the Secret Formula for a Popular Beverage