It is important for companies to build cooperative and transparent channel systems for moving goods, supplies, and services. well-known fast food franchises usually set up distribution systems, where individual franchise owners participate in channel cooperation through legal agreements. a. corporateb. contractualc. administeredd. vending

The correct answer is b) Contractual.

Explanation:

Most of the time, companies use a distribution system for their various products; Each company chooses which method is most convenient for them and their distribution process.

The companies for the distribution need to choose the best system that helps them to comply with their goals. Among the points that are taken into account are: the location, the type of product and the place where it will be moved.

Typically, companies use contractual agreements. The minority merchants sign a contract, where they are required to cooperate with the wholesaler; this is a system widely used by food franchises. For example, in this case, where it is mentioned that fast food franchises will sign contractual agreements for the distribution system with smaller distribution companies

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