Clareese Trends, a clothing manufacturer, identifies twelve potential franchisees who would introduce the brand's outlets across eight major cities in the United States. Clareese Trends, however, has retained the production rights with itself, giving its franchisees only the right to sell the products they receive from the company at their various outlets. This scenario exemplifies a _____.

Question

Quizplus · Accepted Answer

This scenario exemplifies a distributorship, where the franchisees are given the right to sell products produced by Clareese Trends, but the production rights remain with the company.

Clareese Trends, a Clothing Manufacturer, Identifies Twelve Potential Franchisees Who