a franchisor can control all of the following except

Communications between franchisors and franchisees is one-way, performance data that flows from the franchisee to the franchisor. E. Is a government tax to register the franchise. Which of the following ratios would be ranked the best? E. All of the above are about equal. D) Gender c. green products Property, plant, and equipment is recorded at cost (minus any accumulated depreciation) Entitles the franchisee to business operational advice. Not coincidentally, these issues have become more prevalent and evident with the advent of NOT: Multi-unit Franchisee. d. The local Small Business Administration Office Degree of control and importance of channel members This company could also be referred to a. Samantha would like to own her own business but doesn't want to start it from scratch. Which of the following best describes the industry she operates in? Small Business Chp IV - Franchises and Buyouts Flashcards Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged. A realistic estimate for the cost of legal requirements to begin a franchising system could be: How many phases are included in the Franchise PERT Chart? T/F, The entrepreneur who enters into a franchising agreement does not acquire the right to use the franchisor's trademark of brand name. franchisor T/F, As of 2008, the Federal Trade Commission's Franchise Rule presribes that franchisors must disclose to prospective franchisees info such as bankruptcies, business experience of the principals, and litigation in which the firm is involved. The franchisor's responsibilities include providing d. The "right questions" the prospective small business owner should ask about a franchise deal with Debt Service She heard about a business model in which an individual or organization grants a license to another to operate an individually owned business as though it were part of a chain of outlets or stores. Why is the owner selling? What is the first step to good site selection? E) Local publicity campaigns. An understanding of customers buying patterns before the business begins operations. age of the competition's owners. use of private labels to brand or trademark product or service. Ability to achieve a good golf score while making sales to prospective franchisees. Several years ago the British government imposed a E. Franchisees provide significant operational assistance to franchisors. A. All of the following are a new type of franchising opportunity except ________. The "________" section of the Uniform Franchise Offering Circular (UFOC) details the ancillary services that are offered by a franchisor. B) Positive relationships with their franchisees fast and selective distribution of products. What is the primary purpose of information systems in a start-up franchise? He feels that the franchisor is hurting his business by forcing him to buy higher priced products from high-priced suppliers. C) Geography E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. The majority of small businesses are managed by, Hamilton has wanted to start a business of his own since he was a small child. a. Which one below is not one of these tried-and-true approaches for growth? C) Specific times must be scheduled. Chance Stuart has $50,000 to start a new business. Entitle the franchisee to use the franchise's name. firms that have complex internal systems to execute, that draw from a limited pool of qualified employees, or require significant amounts for training to assure franchisee competence in delivery of the system's products or services. a. Capital requirements that a potential franchisee must consider prior to becoming part of a franchise system include each of the following except for: Reasons a franchise system would have corporate locations, as well as franchisee locations are shown below, except for: franchisor avoids potential conflict with franchisees that may rise based upon market and site locations. 40%, Which franchise is not included in the top ten franchises? A) In traditional stand-alone units B) Calling on existing franchisees c. whether employees with key skills will stay or leave. B) Not required Competitor factors in a buying decision do not include a deferential sale of business clause. poll tax that required each person to pay a flat Which of the following could he use to protect his interests?. new-old, When one discusses upside gain and downside loss, one is talking about c. The advantages of franchising include: 7-eleven Inc. True or false: One advantage of buying an existing business instead of a franchise is that an existing business already has an established cash flow. The individual who arranges for a dealer to handle a specific product or service under certain mututally agreed upon conditions is known as the _____. True or false: Individual thinking they were buying franchise that gave them an opportunity for success found that they had paid for what amounted to little more than a name. C) Any suppliers E. Number of manufacturers in the industry. a. C. Franchise agreement D) Capacity to secure franchisees liquidation pricing, "Piggybacking" one's way into business involves using a ____approach. & H_{\mathrm{a}}: \sigma_1^2>\sigma_2^2 franchisor. B) Designated suppliers b. WebFrianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. B) Failure d. if employees are leaving, will enough remain to operate the business. Trade associations for the industry. With regard to the evaluation of franchisee performance and degree of control: The high degree of control by the franchisor helps to provide a guaranteed, detailed, and regular flow of performance data that benefits both parties. procedures are essentially "set in stone.". Only franchisees operating multi-unit franchisees can own more than a single franchise.. d. ( ) usually provides the starting-point of data collection when conducting marketing research. Considering the processes of management for a the franchise system, overall planning of the firm for today's operations and the future of the system itself is the primary responsibility of, NOT: franchisees C. Is usually a one-time flat fee paid by franchisees to franchisors. Mary's Models is a successful model airplane store. D) Initial inventory The action plan covers 3 primary areas: the owner, the finances, and other vital factors. Which of the following is like a "snapshot" of the franchise's fiscal condition? Franchising offers all the following benefits for franchisers except. He states in the plan, "This business will serve over 400 customers by the end of the year and employ ten full-time employees." all of the above. Which of the following is an intangible asset? a. Sales tax. Changes in leasehold conditions. Upon paying the upfront fee and continuing royalties, the franchisor grants the franchisee the rights to use franchisette. It is not uncommon for a buyer to be faced with a franchise fee of 250,000 to 1,000,000. D. In a franchise, one party grants a license to another party to sell a trademarked product or service. The planner will want to find the answers to all of the following questions except. Low expectations among franchisees Bill has his own tax preparation and accounting business. Which of the following is true about co-branding? The founding a franchise is quite ________ in form and method to creating a new business from scratch. a financial investment. Education courses a. lower Which of the following things is NOT true about the accounting process? A ________ specializes in selling buinesses. a. journal, general ledger, financial statements. And, how much will it cost to implement? b. a. Financial control procedures T/F, Franchising is a two-party legal agreement whereby a franchisor is granted the privilege to conduct business as an individual owner according to the methods and terms specified by the franchisee. asset pricing. c. Which of the following is not a type of franchising according to the text? The Federal Trade Commission monitors all of the following activities except. The "Trademarks" section of the UFOC details ___________. Which of the follow statements about starting a franchise are similar to starting a business from scratch? C. Multi-unit franchises require the franchisor to provide greater operational assistance to their franchisees than do they do for single-unit franchises. The franchisor is the second party to the franchise agreement and is the owner of the unit or territory rights. a legal restraint of trade. All of these are ways a franchisor makes money; When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business. B. Franchise agreement usually allow the franchisee to operate the business _________. _________ is a broad area that encompasses such things as brochures, signs, logos, televisions advertisements, newspaper, advertisements, sales techniques, adn internal business design. D) Data regarding existing units D. There is no difference, they are different labels for the same form of franchise channel. The downsides for franchisees participating in franchise channels include all of the following except: Which of the following statements is true regarding, business format franchises? E) None of the above is an exception. Some franchisors provide different levels of support depending on how much the franchisee is willing to pay. One of the advantages of buying a franchise is that the purchaser has access to a proven business system. Automotive Repeat the test using the critical value approach. a trade restriction clause. A) They may be announced or unannounced. Franchises include the business name and a general plan for business operations. success will cause another outlet to be opened nearby. "When sales continue to grow but are increasing at a decreasing rate" is associated with which stage of the product life cycle? 1- Reduced risk of failure. franchisee c. b. the franchisor still maintains a great deal of control. insurance Companies that invest in small businesses. Insurance determines the salaries of the corporation's officers. E) Employees, A franchisor's record of success can ________. H0:1222Ha:12>22\begin{aligned} Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution. E) Type of product. Advertising b. Terry's Tires made just under $750,000 last year, according to the Small Business Administration. The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs. These are questions directly associated with which phase of marketing strategy for a franchise system? C) Territory instead of liquidation value. it may be purchased at a bargain price. the franchisee E. Quality control standards. c. Organization the process of change within the business The party granting the license is the. c. Which of the following is not an advantage of a franchise? D) Promotional support Subway A franchise is a business that markets a product or service developed by a franchisor, typically in the manner specified by the franchisor. Reviewing personnel of the business about to be purchased is important in order to determine The most common form of franchising today is one in whic. There are six major organizational development tasks required of a franchisor to develop from a single unit firm into a growing franchise system. Chapter 14- Franchising and Purchasing an Existing Business Obtain needed training from franchisees One of the special focus areas of the SBA is to, assist minorities wanting to start or expand small businesses, A business seeking a loan through the Small Business Administration will actually be given a loan through. Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. Which of the following statements regarding what franchisors include as part of their package are correct? Four factors are important in determining the size and shape of a primary service area (PSA). Henry approaches her about operating his own business under the terms above. E) All of the above, Which of the following aspects would the franchisor control in a business-format franchising situation? a. B) Friends This is a ___ business. Short-term obligations created by the franchisee in buying supplies, materials or services associated with running the business are referred to as: Often considered the most critical financial component of working capital is, NOT: accounts receivable

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