Question

David owns a footwear chain. His stores attract many customers because they sell various footwear brands. Thus, David has entered a franchise contract with different footwear manufacturers. His stores do not exclusively sell a single brand. Which franchise model does David’s business follow?

Answer 1

Multi-brand franchising

Explanation:

In this type of franchising , a business unit sells the product of more than one brand . The product must be similar in nature . A shopkeeper selling product of many brands manufacturing footwear is an example. Similarly a shopkeeper selling ice cream of many brands is another example. It is done to rope in customers attached with different brands and also to make use of optimum utilisation of resources , tools and systems.