A product and trademark franchise is an arrangement under which the franchisor grants to the franchisee the right to buy its products and use its trade name. This approach typically connects a single manufacturer with a network of dealers or distributors. Automobile dealerships and soft-drink distributorships are examples of these franchises.
Product and trademark franchisees are typically permitted to operate in a fairly autonomous manner. The parent company, such as British Petroleum (BP) is generally concerned more with maintaining the integrity of its products than with monitoring the day-to-day activities of its dealers or station owners.
A product and trademark franchise is a relationship where the franchisor grants the right to use its trademark and to purchase its products to the franchisee. This approach makes a connection between a single manufacturer and multiple franchisees.
Under product and trademark franchise, the franchisor gives a formula for performing business to the franchisee along with the right to purchase its products and use its trade name, advertising, training, and other kinds of assistance. It is more popular and entrepreneurial firms more often use it such as fast-food restaurants, consulting services, and convenience stores.
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