Cathy buys an exclusive territory in which she is authorized to set up a plant to make Delite Dairy products. After receiving the recipes, Cathy begins making Evie's-brand yogurt and other Delite products. This is

Question

Quizplus · Accepted Answer

Cathy has purchased an exclusive territory and the right to use the Delite Dairy recipes to manufacture their products. This fits the definition of a manufacturing franchise, where the franchisor grants the franchisee the right to produce and distribute their products using their proprietary methods and/or intellectual property within a defined territory.

Cathy Buys an Exclusive Territory in Which She Is Authorized