Question

What is the appropriate description for a distributorship?

a) A franchisee makes or sells a franchisor’s product.
b) A franchisee produces and sells a franchisor’s product using the franchisor’s name.
c) A franchisee sells a franchisor’s product in a specific geographic area.
d) None of the above.

Answer 1

A distributorship is a type of franchise where a franchisee sells a franchisor's product in a specific geographic area.

Step-by-step explanation:

The appropriate description for a distributorship is option c) A franchisee sells a franchisor’s product in a specific geographic area. In a distributorship, the franchisee sells the products of the franchisor in a particular region. The franchisee may operate an exclusive territory, where they have the sole right to sell the franchisor's products in that area.