When you have the rights to sell a franchisor’s trademarked product pu

QUESTION

When you have the rights to sell a franchisor’s trademarked product purchased from the franchisor, what kind of franchise are you?

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

ANSWER

Answer: A
Explanation: A) A distributorship, or a product-distribution franchise, is a franchise in which a franchisee has been given the right to sell trademarked products purchased from the franchisor.