a. Identify and explain the form of external expansion adopted by Fizz& Lime.

Question

Fizz & Lime is an established beverage company which started bottling Wheat Grass Juice; Bitter gourd with Jamunand Amla with Aloevera. It is planning to expand externally without compromising on the unique taste of these drinks.

Belligio Juices got exclusive rights to manufacture and sell Wheat Grass and Amla Aloe under the name Fizz& Lime. Belligio Juices had to use only the ingredients supplied by Fizz& Lime to produce, bottle and distribute the two drinks.

a. Identify and explain the form of external expansion adopted by Fizz& Lime.

b. State any one feature of this form of expansion.

Answer 1

a. Manufacturing franchise opportunity

These types of franchises provide an organization with the right to manufacture a product and sell it to the public, using the franchisor's name and trademark. This type of franchise is found most often in the food and beverage industry.

b. Franchisee must use the ingredients given by the franchisor to produce, bottle and distribute the soft drinks.