Select the correct answer. George runs a small retail business. He sells brands that another business manufactures. George's retail store uses the logos and trademarks of
that business to attract customers. George thus acts as a dealer on behalf of the manufacturing business. Which type of franchise model does
George's retail business follow?
ОА
trademark franchise
ОВ.
product distribution franchise
OC. manufacturing franchise
OD
management franchise
OE
business format franchise

B. product distribution franchise

Explanation:

In this scenario, George runs a small retail business and sells brands (products) that another business manufactures. George's retail store uses the logos and trademarks of that business to attract customers by acting as a dealer on behalf of the manufacturing business.

Hence, the type of franchise model that George's retail business follow is a product distribution franchise.

A product distribution franchise can be defined as a supplier-dealer business relationship in which a dealer (franchisee) is granted a license by the manufacturer (franchisor) to sell and distribute their products.

In this type of franchise, the dealer (franchisee) is only granted the license to use just the logos and trademarks of the manufacturer (franchisor) but not the framework (system) for the establishment and operations of the business.

Some examples of a product distribution franchise is Fords motors, Coca-Cola, mobile homes, Guiness etc.

a.

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