Malory designed a new handbag that is selling well. She started to manufacture them on a large scale and considers her options.
She opts for a distributorship franchise under which she will: a. license distributors to sell her handbag. b. pay for one half of the franchisee's startup cost. c. grant a trade name in her authorized dealers.
She opts for a distributorship franchise under which she will license distributors to sell her handbag.
Option: (A)
<u>Explanation:
</u>
The process of granting distributorship of your product to a third-party individual or firm culminates in permitting that particular individual or firm to deal in your products at a fixed margin of profit for the distributor.
Such licensing only includes the sale of products and not the modification or alteration of the products manufactured by you.
