Understanding Business
Understanding Business
11th Edition
ISBN: 9780078023163
Author: William G Nickels, James McHugh, Susan McHugh
Publisher: McGraw-Hill Education
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Chapter 15.6, Problem 15.6AQ
Summary Introduction

To determine: The ways in which contractual distribution system ensures consistent quality and level of service.

Introduction: When the contractual agreements are made between the manufacturer and different retailers and retailers are bound to follow the terms of the agreement and work accordingly, it is known as contractual distribution system.

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Choose a nationally recognized franchise (e.g., Subway, Curves, 7-Eleven, Quiznos, REMAX, Choice Hotels International, Dunkin' Donuts), and visit that company’s website to learn about its contractual marketing system, as well as information about its products, logistics, supply-chain management, and physical distribution system. Post a brief report explaining why you would or would not be interested in purchasing a franchise from the company.
List and explain the types of independent andmanufacturer-owned wholesaling intermediaries
ranchising is an arrangement in which a supplier grants a dealer the right to sell products in exchange for a percentage of total sales, equipment, buildings, management, and marketing assistance. If you were opening a retail business, would you prefer to open an independent store or a store under a franchise agreement? Why?
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