A friend of yours heard her roommates talking about different kinds of franchises. Before she could ask questions, they left for a team meeting to work on a class project. Your friend knows that you are taking an entrepreneurship course. She asks you: What are the differences between a product and trademark franchise and a business format franchise? For a first-time entrepreneur, she wonders, is there an advantage to one of these types of franchise arrangements compared to the other one? If so, which one is more advantageous for the first-time entrepreneur to pursue and why?