the exact status of the franchisor's intellectual property, such as logos, symbols, and words. discloses any predecessor to the current business. They have heard that the disadvantages of small businesses include all of the following except. A. Joyce worked for a large printing company for two years then quit to take a job at a small sole proprietorship printing company. b. 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? WebThe Franchisor bills and received payment from the customer directly, and then after deducting its royalties and other fees and payments, sends the Franchisee the balance; If A franchisor typically provides _______ to develop performance management programs, quality controls methods, forecasting, and purchasing of equipment, which are very valuable services that act as guidelines rather than mandates in deciding on a franchise. C) Encouraged A) Established multiple franchises d. Chapter 1-4 Flashcards | Quizlet Adequate frontage is a necessity for most retail businesses. Franchisee or Franchisor: Who Gets Franchise Control | QVALON sales taxes, business taxes, property taxes, employee taxes. Which descriptor is not a part of the definition or franchising? E. Single-unit franchises are a very low-cost method of selling. There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base. Jeremy has written a business plan for the business he would like to open. In business format franchises the franchisor provides the complete system for operating the business. Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. How many years will she have to repay the loan? Which of the following are areas that the potential franchisee may be able to negotiate with the franchisor? c. A) Accounting NOT: dealing with financial issues such as accounting and finances. b. d. d. franchisee The franchisor says it has the power to control which suppliers the franchisees use due to implied powers in the franchise agreement. Franchises are governed by ________ laws and regulations. Franchising and franchise channels continue to grow dramatically. Franchising and franchise channels continue to grow dramatically franchise fees Which of the following issues should detailed in the "Business Experience" section of the Uniform Franchise Offering Circular (UFOC)? a. T/F, Because the offering and sale of a franchise are more intensely regulated by state and federal laws than is the establishment of a new business, individuals and/ or firms involved in negotiating a franchise arrangement have limited need for legal counsel. b. Which of the following best describes the industry she operates in? Subway A lawyer test review chapter 7 Flashcards | Quizlet B) Contractual obligations Business students at universities can work together to provide management counseling to small businesses in their community. One of the advantages of buying a franchise is that the purchaser has access to a proven business system. The Franchise Disclosure Document helps the franchise buyer to make a knowledgeable purchase. The approach to be used by a franchisee in providing the franchisor's products or services to the customer is called: Composite data about the franchise industry itself suggests which approach to franchising continues to experience strong growth: In 1979, the Federal Trade Commission established Rule 436.1, also known as the Franchise Disclosure Act, for the purpose of: diminishing illegal and unethical practices. Which of the following statements best describes franchise channel structure? Match the situations involved in the negotiation process between a franchisor and a franchisee with their likely outcome: The franchisor might negotiate a complete different deal with the granchisee in order to get started with a self-sufficient operator. Communications between franchisors and franchisees is one-way, performance data that flows from the franchisee to the franchisor. new-new ENT 3172 Chapter 1-12 Terms Flashcards | Quizlet b. Independence and a desire to determine one's own destiny are some of the entrepreneurs' personal factors in small-business success, others include: Jennifer would like to open her own business. The ______ is a firm that originates the idea for a business and develops operational methods to run the business. Which of the following does Smoothie King founder Stephen Kuhnau credit as the reason for his success? a. Marketing strategy. T/F, Valuing a company is an easy task that results in a precise figure T/F, Financial statements can mislead a potential purchaser trying to develop an accurate business valuation T/F, A nondisclosure agreement signed by a prospective buyer shows the seller that the buyer intends to purchase the business T/F. A ____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon condtions. Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. new-new Franchising is based on a system that the franchisor has already set upand it works. Thus, franchisees must comply with both the franchise agreement and the franchise operations manual to achieve a comparable level of performance. Moreover, these materials safeguard the whole franchise. d. A key question to ask when buying an on-going small business is which of the following? a. In many instances, products or ingredients in a franchise must be purchased from ________. In what way is a franchise's control over the business greatly reduced? d. Externally dedicated to the market, yet internally focused on production, seeking to produce high-volume or high-value product/service while carefully examining any new opportunities for costs/benefits in relation to known strengths of the firm, is a description of which one of the market-focused business strategies identified below. Product and trade-name franchising is the licensing of the product or the production of the product and the use of the trademark, logo, or other identity of the franchise. c. d. Which of the following is something that would not be included in the plan? Franchising offers all the following benefits for franchisers except. A. b. opportunitites. franchise of dollars instead of units. What is the primary purpose of information systems in a start-up franchise? D. Usage tax. Which major question in his business plan does this statement address? E. All of the above statements are accurate. Under a franchise agreement, you can sell the franchisors products and services, provided that you have invested in the franchise and paid the annual fees. Conversely, franchises typically have an established brand, streamlined management practices, and ongoing support. This is a ___ business. Which of the following is an advantage to purchasing a franchise?. The franchise with the most outlets in the United States is. The "Restrictions on What the Franchisee May Sell" section of the UFOC describes ____________. Ch.16 Flashcards | Quizlet Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one? Give the accounting assumption that is most applicable to each of the statements. Which of the following antitrust legislation laws makes it illegal for competitors to get together and set prices on the products or services they sell? a. Which of the following is not a disadvantage of a major franchise? health care Who is responsible for these activities and outcomes? An advantage associated with franchising is b. D. Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. The control issues are: 1. price competition may affect profits. TRY: data analyses. Marilyn and Macy are arguing about the primary financial function of the Small Business Administration. the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and What are they? B. c. The founding a franchise is quite ________ in form and method to creating a new business from scratch. The owner may be in trouble with suppliers. B. new-old, old-old all of the above. Which of the following is like a "snapshot" of the franchise's fiscal condition? a. Ability to achieve a good golf score while making sales to prospective franchisees. C. Franchise fee. guidance from the franchisor Terry's Tires made just under $750,000 last year, according to the Small A regular and continuous fee paid to the franchisor by the franchisee is called: Develop strategic plans for the franchise firm. 41 Regulations that protect consumers include trademarks, zoning, regulations, and consumer protection laws. inventory franchisee. The franchisor's responsibilities include providing WebProbably the earliest example of franchising in the United States is most likely to be: McCormick Harvesting Machine Company. Changes in leasehold conditions. a. B. By immersing them in a week-long training session in an actual store, All the following explain why franchising is so widespread EXCEPT. Uniqueness in a product or service can be demonstrated through a new-new approach or c. instead of liquidation value. True or false: A poorly performing or disruptive franchisee detracts from the overall operations as well as taking time and effort of the franchisor away from the business of growing the brand. Richard orders some Harley-Davidson Trikes for his inventory. Which of the following is NOT one of the four P's of selling? d. C) Penalty green products Which of the following statements regarding the franchise fee are correct? b. E) All of the above. WebQuestion: All of the following are reasons a franchisor may wish to maintain some degree of control and supervision over the franchisee, except to protect the franchise's name and It is always important that you weigh the advantages vs. disadvantages in purchasing a franchise. d. Franchisors benefit from the franchise agreement because they have. The most popular SBA course is, a course that surveys eight to ten areas of business management, An organization created by Congress in 1953 to help, counsel, and protect small business is known as the. She is concerned she may not be given a loan and researches the subject, discovering that in 2013, the SBA data showed that women-owned businesses are. E. Franchisees provide significant operational assistance to franchisors. The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. B. Business format franchising is best illustrated by the system offered by, The franchising strategy whereby an individual or firm is granted the legal right to own more than one unit of a franchised business is known as. a. b. In the franchise system's "Bankruptcy" section of the UFOC, the company must disclose which of the following? b. d. A. Identify an accurate statement about buying an existing business. provide continuing aid and a guidance to the person buying the franchise. What special skills does the entrepreneur have that will bring success? d. franchisette. a. a. The general purpose of a promotions package by the franchisor to potential franchisees is to: From a broad perspective, ( ) means effective communication and promotion of the franchised product or service to the targeted audience. Which of the following is NOT a component of a properly developed franchisor plan? old-new franchising Which of the following is a question which can be sidestepped when buying a business? As it pertains to the motivation of franchisees, which statement is generally false? A franchisor pays a fee to obtain a franchise. pay a fee. Identifying one or more target markets and creating a marketing mix that has focus upon a customer grouping's needs is the definition of. old-new E. All of the above are about equal. "The Franchisor, Its Predecessors, and Affiliates" section of the UFOC _________. An advantage to buying an on-going business is a. d. The local Small Business Administration Office Test the following hypotheses at the .05.05.05 level of significance. must be provided to the potential franchisee early in the process. My salary has remained the same for the past 7 years, but my standard of living has fallen. planning, persistence, patience, people, profit (pg 136) what are the 3 When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business. E. Possible high level of managerial motivation fostered by franchising. A. both of the above. track record of the franchisor Solved Knowledge Check 01 Which of the following statement Franchise fees: b. Business services. The most important area to examine prior to purchasing a business is company profitability. What pricing strategy should the firm use? B) Marketing What is the owner's personal net worth? c. The _________ has the responsibility for the business location, of establishing the business, and of building the storefront. competition may be spending more money on advertising than you. Samantha would like to get a small business loan from the SBA. Evaluating franchise opportunities include finding out more about which of the following? Advertising A wholesaler purchases products in quantity from _____ and then resells them to retailers. Which one of the following statements is true? The individual who buys the franchise is the inventory turnover. C. Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels. C) Years of experience a. franchisor supplies brand names, techniques, or other services instead of a complete product. Collecting a percentage of sales from each franchisee True or false: An entrepreneur should explore what aspects of a franchisor-franchisee contract are negotiable by making a list of wants and desires.
