Franchisors Sometimes Pay Reverse Royalties to Franchisees If It Is

question 272

True/False

Franchisors sometimes pay reverse royalties to franchisees if it is evident that the franchisor's Internet sales have negatively impacted the profits of traditional bricks-and-mortar franchisee businesses.

---

Definitions:

Vertical Channel Conflict

A type of channel conflict in which members of the same marketing channel, for example, manufacturers, wholesalers, and retailers, are in disagreement or discord.

Marketing Channel Management

The process of overseeing the pathways through which products or services flow from producers to consumers, including logistics and distributor relations.

Corporate Vertical Marketing System

A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios.

Retailing Activities

Tasks and functions involved in selling goods and services directly to consumers for their personal, non-business use.