There are three general types of franchising arrangements. In one approach, the franchisor authorizes retailers to sell a particular brand-name item. This type of arrangement is common in all of the following areas except

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The soft-drink industry typically involves franchise agreements for bottling and distribution rather than retail sales of brand-name items, which is different from the retail-focused franchising arrangements found in truck and car sales, shoe sales, the gasoline industry, and paint sales.

There Are Three General Types of Franchising Arrangements