Franchisinga contractual vertical marketing system in which a franchisor licenses a franchisee to produce or market goods or services to certain standard laid down by the franchisor in return for fees and/or royalties.

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Quizplus · Accepted Answer

Franchising is indeed a type of contractual vertical marketing system where a franchisor (the owner of the brand and business model) licenses a franchisee (an independent operator) to use the brand and business model to produce or market goods or services according to specific standards set by the franchisor, usually in return for fees and/or royalties.

Franchisinga Contractual Vertical Marketing System in Which a Franchisor Licenses