Franchising Is Basically Contractual in Nature

question 21

True/False

Franchising is basically contractual in nature.

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Definitions:

Credit

Refers to the ability of a consumer or business to borrow money with the promise to repay it, along with any agreed upon interest, at a later date.

Channel Conflict

This arises when different sales channels (such as online and brick-and-mortar stores) for the same product compete with each other, potentially undermining sales or brand coherence.

Horizontal

Relating to the expansion or operation across the same level or stage in the supply chain, industry, or market, often involving partnerships or mergers.

Vertical

Pertains to a market or industry structure where the production process, from raw materials to final product delivery, is integrated within a single company or closely controlled through a chain of ownership.