Question
Differentiate between product franchise and manufacturing franchise.
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S. No.
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Basis
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Product franchise
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Manufacturing franchise
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1.
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Mode of operation
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Under this form, the manufacturer grants a store owner the authority to distribute goods manufactured under their brand name.
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Under this form, the franchisee is conferred with exclusive rights to manufacture and sell a product, using the franchisor's name and trademark.
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2.
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Operative in
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This form of franchising is common in automobile sector and its related goods.
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This form of franchising is prevalent in the food and beverage industry.
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| Business | Items being Unit of Sold/ Serviced | Unit of sale |
| Garment Shop | T-Shirt | ? |
| Textile Shop | Fabric | ? |
| Restaurant | Cake | ? |