Question

What type of contractual system describes a situation where assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?
a. administered system
b. conglomerate system
c. franchise system
d. vertical integrated system
e. retail-sponsored cooperative

Answer 1

Option C,  Franchise system

Explanation:

A vertical contract marketing system is used in which companies work together to create higher economies or shipments, at different manufacturing and distribution rates than they do on their own.

The site owner does not handle and handles the location in which their products or services are served daily by the consumers in a franchise system. The job of the franchisee is to serve the customer.

McDonald's, KFC, Famous Amos, Starbucks Coffee and Dunkin ' Donuts are well-known examples of market style franchise. The franchisee offers operations knowledge, software and/or processes to operate the company as a form of service agreement.