Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
"Sparkler" is an established brand of home care products owned by Shri Hari enterprises. The company, in a bid to expand its market and production, has invited franchisees who will be producing its most successful product which is toilet cleaners. Suhasini, a willing applicant for this opportunity has learnt that she will take the ingredients of the cleaners to produce, bottle and distribute them in the name of the company. Identify the type of franchising strategy used by Shri Hari enterprises for its expansion
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.