Franchising involves a(n)__________ marketing system.

Question

Quizplus · Accepted Answer

Franchising is a contractual marketing system where the franchisor grants the franchisee the right to use its brand name, products, and processes in exchange for a franchise fee and ongoing royalties. The franchisee is required to follow the franchisor's policies and procedures, and the two parties are bound by a legal agreement known as the Franchise Disclosure Document (FDD). The cooperative marketing system involves multiple independent businesses that work together to achieve common goals, while the corporate marketing system is where a single company controls all aspects of production, distribution, and marketing. Administered and conventional marketing systems are not applicable to franchising.

Franchising Involves A(n)__________ Marketing System