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Contemporary Business
Quiz 31: Franchise and Special Forms of Business
A "Distributorship" Franchise Is Used When the Franchisor Manufactures a Product
Question 7
True False
A "distributorship" franchise is used when the franchisor manufactures a product and licenses a retail dealer to distribute the product to the public.
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Related questions
Q 8
In a processing plant franchise,the franchisor provides a secret formula or the like to the franchisee; the franchisee then manufactures the product at its own location and distributes it to retail dealers.
Q 9
In a "chain-link" franchise,the franchisor licenses the franchisee to make and sell its products or services to the public from a retail outlet serving an exclusive geographical territory.
Q 10
Franchises may be granted to sell and distribute products,but not to perform services.
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