Which of the following statements about franchising is True?
A) Franchising is a type of contractual vertical marketing system.
B) The franchise parent company is called the franchisee.
C) The owner of the franchise unit is called the franchisor.
D) The two kinds of franchise formats are business formats and customer formats.
E) All of the above statements about franchising are True.

Question

Quizplus · Accepted Answer

Franchising is indeed a type of contractual vertical marketing system, where a franchisor grants a franchisee the right to use its trademark or trade name as well as certain business systems and processes, to produce and market a good or service according to certain specifications.

Which of the Following Statements About Franchising Is True