Fizz and Lime is an established beverage company which started bottling Wheat Grass Juice, Bitter Gourd with Jamun and Amla with Aloevera. It is planning to expand externally without compromising the unique taste of these drinks. Belligio juices got exclusive rights to manufacture and sell Wheat Grass and Amla, Aloevera under the name Fizz and Lime. Belligio Juice had to use only the ingredients supplied by Fizz and Lime to produce, bottle and distribute the two drinks. Identify and explain the form of external expansion adopted by Fizz and Lime.

Question

Accepted Answer

The form of external expansion adopted by Fizz and Lime is **Manufacturing Franchise**. In this type of franchise, an organization is given the right to manufacture a product using the franchisor's name and trademark and sell it. This is common in the food and beverage industry, particularly with soft drink bottlers.

In this case, Fizz and Lime (the franchisor) granted Belligio Juices (the franchisee) the exclusive rights to manufacture and sell Wheat Grass Juice and Amla Aloevera under the Fizz and Lime brand name. Belligio Juices had to use only the ingredients supplied by Fizz and Lime to produce, bottle and distribute the two drinks. This arrangement is典型的 of a manufacturing franchise where the franchisee manufactures the product according to the franchisor's specifications and standards while using the franchisor's trademark.