A franchise organization is an example of a(n) ________ vertical marketing system.
A) corporate
B) administered
C) contractual
D) regulatory
E) controlled

Question

Quizplus · Accepted Answer

A franchise organization is an example of a contractual vertical marketing system because the members of the system, the franchisor and the franchisees, are bound by a contractual agreement that outlines the terms of the relationship between them. The franchisor provides the franchisee with the right to use its trademarks and business system in exchange for fees and ongoing support, while the franchisee agrees to operate the business according to the franchisor's standards and guidelines.

A Franchise Organization Is an Example of A(n) ________ Vertical