What is a contractual vertical marketing system? Give an example of a type of business that works as a contractual VMS

What will be an ideal response?

A contractual VMS consists of independent firms at different levels of production and distribution that join together through contracts to obtain more economies or sales impact than each could achieve alone. Channel members coordinate their activities and manage conflict through contractual agreements. The franchise organization is the most common type of contractual relationship. In this system, a channel member called a franchiser links several stages in the production-distribution process. Almost every kind of business has been franchised — from motels and fast-food restaurants to dental centers and dating services, from wedding consultants and handyman services to funeral homes, fitness centers, and moving services. For example, Two Men and a Truck moving services — "Movers Who Care" — grew quickly through franchising. Started 30 years ago by two brothers with a pickup truck looking to make extra money while in high school, Two Men and a Truck now has a national network of 306 independently owned franchise locations with 1,900 trucks, pulling in $350 million in annual revenues.