A _____ is a type of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.
A)business format franchise
B)conglomerate merger
C)distributorship
D)divestiture

Question

Quizplus · Accepted Answer

Distributorship is a type of franchising where the franchisor creates a product and permits franchisees to distribute it. The franchisee conducts business under their name while following certain guidelines established by the franchisor. This differs from a business format franchise in which the franchisor provides the franchisee access to all aspects of their business, including operational systems and procedures, branding, and training. Divestiture and conglomerate merger, on the other hand, are not related to franchising.

A _____ Is a Type of Franchising Arrangement in Which