QUESTION IMAGE
Question
what is a franchise doing if it makes a product and licenses the franchisee to sell it?
distributorship
business format franchise
renting its product
providing a franchise disclosure document
In a distributorship, a company makes a product and licenses a distributor (franchisee in this context) to sell it. A business - format franchise involves more than just product - selling, including business operations and branding. Renting a product is different from licensing to sell. A franchise disclosure document is a legal document and not related to this action.
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A. distributorship