Manufacturer Sponsored Retailer Franchise System Example

A good example of this is an independent contractor investing in a franchise that has an established name and reputation in their field of work.

Manufacturer sponsored retailer franchise system example. Mcdonalds and burger king are examples of franchises. This model is similar to the manufacturer retailer model. A manufacturing franchise is a franchising agreement where the franchisor allows a manufacturer to produce and sell products using its name and trademark. A ford and its network of independent franchised dealers b licensed bottlers that bottle and sell coca cola to retailers c motels such as holiday inn and ramada inn.

For those wishing to start a business or expand into a new area of business without needing to build a customer base from scratch a franchise can fit the bill. Examples of franchising companies. Instead manufactures usually sell their products to other businesses down the chain like a retailer dealer or wholesaler. The second type is the manufacturer sponsored wholesaler franchise system coca cola licenses bottlers wholesalers in various markets who buy coca cola syrup concentrate and then bottle and sell the finished product to retailers in local markets.

Which of the following is an example of a manufacturer sponsored retailer franchise system. The first is the manufacturer sponsored retailer franchise system for example ford and its network of independent franchised dealers. Manufacturers mainly focus on production and creating products or finished goods. Under the franchise system an individual or franchisee essentially pays a company for the right to employ trademarks and.

Franchising retail sponsored and wholesale sponsored are forms of a contractual vertical marketing system. The model of franchise started off as a product franchise model. Under this model the dealers are given a right to distribute goods of the brand. Manufacturers rarely sell their products directly to consumers or the end users of the products.

3 service sponsored retail franchising provided by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others. Manufacturer sponsored wholesale system manufacturer allows wholesalers to purchase the product and promote distribute and alter it anyway they chose. These relationships are a popular form of vertical marketing. A product franchise is a franchising agreement where manufacturers allow retailers to distribute products and use names and trademarks.

Product franchises are a great option for first time business owners independent contractors and home businesses since the investment needed is usually smaller than that of business format franchises. This system allows companies to benefit from economies of scale and marketing reach.