In which type of franchising, manufacturer grants the store owner the authority to distribute goods by the manufactures and allows the owner to use the name and trademark owned by the manufactures.

Product Franchise

The correct answer is option (2) - Product Franchise.

Product franchise business opportunity: Manufacturers use the product franchise to govern how a retailer distributes their products. The manufacturer grants a store owner the authority to distribute goods by the manufacturer and allows the owner to use the name and trademark owned by the manufacturer. The store owner must pay a fee or purchase a minimum inventory of stock in return for these rights. Some tire stores are good examples of this type of franchise.