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?
A
business format franchise
B.
trademark franchise
C. manufacturing franchise
D. management franchise

B.  trademark franchise

Explanation:

-Business format franchise is when the franchisee gets a business with the name and trademark of the franchisor and has to follow the guidelines established, for example, a restaurant's franchise.

-Trademark franchise is when the franchisee gets the permission to distribute the product but uses its business format.

-Manufacturing franchise involves the permission to produce a product to sell it to the customer or retailers.

-Management franchise requires that the owner supervises the operations but he/she doesn't have to be in the daily activities. The franchisee should be someone with management experience to handle the business successfully.

According to this, the answer is that the franchise model that David's business follow is trademark franchise because he gets the manufacturers permission to sell their products on his own footwear chain.

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