In a(n) ________ franchise, the franchisor manufactures a product and licenses a retail dealer to sell the product to the public.

Question

Quizplus · Accepted Answer

In a distributorship franchise, the franchisor provides the product and allows a retail dealer to sell it to the public. The retail dealer operates under the franchisor's name and must follow the franchisor's rules and regulations. Therefore, option C is the best choice. Option A is incorrect because a processing plant franchise involves the franchisor providing the raw materials and equipment necessary to manufacture the product, rather than selling the product directly. Option B is incorrect because an area franchise involves the franchisor granting a franchisee the right to open and operate multiple units within a specific geographic area. Option D is incorrect because a chain-style franchise involves the franchisor having a significant level of control over the franchisee's operations, including the type of product offered and the layout of the business.

In A(n) ________ Franchise, the Franchisor Manufactures a Product and Licenses