Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
Most bottlers of soft drinks receive a franchise from a company and must use its ingredients to produce, bottle and distribute the soft drinks. Which of the following type of franchising model is used by such bottlers?
Options:
Product franchise business opportunity
Manufacturing franchise opportunity
Business franchise opportunity ventures
Business format franchise opportunity
Correct Answer:
Manufacturing franchise opportunity
Explanation:
Manufacturing franchise opportunity: These types of franchises provide an organization with the right to manufacture a product and sell it to the public, using the franchisor's name and trademark. This type of franchise is found most often in the food and beverage industry. Most bottlers of soft drinks receive a franchise from a company and must use its ingredients to produce, bottle and distribute the soft drinks.