Juanita bought a franchise in which she makes Tooty Frooty soft drinks

QUESTION

Juanita bought a franchise in which she makes Tooty Frooty soft drinks with supplies she purchases from the franchisor and sells the product to local grocery stores. What kind of franchise did Juanita buy?

A) a product-distribution franchise
B) a franchise outlet
C) a business-format franchise
D) a manufacturing franchise
E) a chain store

ANSWER

Answer: D
Explanation: D) In a manufacturing franchise, the franchisee is given the right to manufacture and distribute a certain product, following a formula or using supplies purchased from the franchisor.