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There are two major classes of franchising. One is business format franchising. What is the other one?

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User Hobenkr
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Final answer:

Besides business format franchising, the other major class of franchising is product distribution franchising, which supplies the product but not the entire business system.

Step-by-step explanation:

The other major class of franchising, aside from business format franchising, is product distribution franchising. While business format franchising involves the franchisor providing a full business model, including the brand name, business processes, and marketing strategies, product distribution franchising is a bit different. In this model, the franchisor supplies its product to the franchisees but does not provide an entire system for running the business. This model is commonly used in industries such as automotive and soft drinks.

Learn more about Product Distribution Franchising

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User Ritwik Bose
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