"CEAT, manufacturer of tyres, uses this 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 owners in turn pay a fee or purchase a minimum inventory of stock in return for these rights. " Which of the following type of franchising opportunity is used by CEAT?

Product franchise business opportunity Manufacturing franchise opportunity Business franchise opportunity ventures Business format franchise opportunity

Product franchise business opportunity

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.