Which of the following ratios would be ranked the best? 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. a. D. Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. As a franchisee you will benefit from the purchasing power of the franchisor to get lower costs and improved vendor service. Which of the following could he use to protect his interests?. d. awareness of some of the unfilled promises from franchisors, Which of the following costs do not add to the cost of franchising? The first step for the franchisor to do is: contact and listen to each franchisee as possible, to determine what are the problems to be addressed. he can ensure that the new stores are operated according to his own standards through the franchise agreement. A sample of 16 items from population 1 has a sample variance s12=5.8s_1^2=5.8s12=5.8 and a sample of 21 items from population 2 has a sample variance s22=2.4s_2^2=2.4s22=2.4. a financial investment. E) All of the above, The FDD includes information such as ________. He has misjudged, In order to operate a successful small business, the entrepreneur should be most concerned with, Jeff Katz, the founder of Orbitz,Inc., when speaking about new businesses recently said, "A flat checkbook is the mother of invention." d. About fifteen percent of all marriages in North America fail. Entitle the franchisee to use the franchise's name. D) Unable (Check all that apply.) c. C. The franchisor provides little beyond a license to use its trademarked products. a. C. Potential to reduce distribution costs The product quality is within the perception of the customer and is greatly influenced by the franchise system's server. What is a realistic number for a sample size when doing market research? d. b. b. E. Franchising and franchising channels are not growing in other developed countries. One downside for franchisors participating in franchise channels is: b. B) They are always surprise inspections. E. Number of manufacturers in the industry. The majority of small businesses are managed by, Hamilton has wanted to start a business of his own since he was a small child. Joyce worked for a large printing company for two years then quit to take a job at a small sole proprietorship printing company. franchisee The franchisor provides a system for the franchisee to operate the business. the cost of replacing an employee. d. All are costs. The "Restrictions on the Sources of Products and Services" section of the UFOC describes _______, what the potential franchisee must purchase from the franchisor and what the franchisee can source independently. Low expectations among franchisees Developing a plan for the business. Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees. journal, general ledger, financial statements. B) Marketing In a franchise, two parties are involved, the franchisee and franchisor. and B. Which of the following laws requires lenders to inform consumers about all costs of credit before an agreement is signed? d. legal and professional fees A) They may be announced or unannounced. What's the difference between the sales package and sales playbook? franchatter. new-old, old-old b. How old is the business? WebWhich of the following is an advantage to purchasing a franchise?. The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. Renewal, Termination, Transfer, and Dispute Resolution. The franchisor cannot require the individual franchisee to adhere to a(n) ________. saleable value. instead of liquidation value. All of the above, Have a seller retain a _____interest in the business. Business format franchises are prevalent in which of the following businesses? 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? Franchising and franchise channels continue to grow dramatically C) Penalty E. All of the above are about equal. 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? The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs. new-new Collecting a percentage of sales from each franchisee Degree of control and importance of channel members 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 A wholesaler purchases products in quantity from _____ and then resells them to retailers. 1- Reduced risk of failure. The business arrangement, otherwise called a franchise opportunity, has three major components that constitute the essence of what is generally referred to as a franchise. This category of information offers the distinct advantages low cost and quick availability. An existing business has an established cash flow. B) In convenience stores d. competition may be spending more money on advertising than you. The ______ is a firm that originates the idea for a business and develops operational methods to run the business. The "Federal Trade Commission" does not provide information on franchise success. Franchisees may pay a fee that is separate from the royalty fee, often called a cooperative advertising fee, to contribute to an individual advertising fund. B) Not required C. These franchises operate in environments with little competition. b. Automobile dealerships and ___ were the primary uses for franchises in the early days of franchise agreements. Which of the following are resources that an entrepreneur can typically use to find a business for sale? If a franchise system is struggling, not achieving long-term success. Good cause B. "The Franchisor, Its Predecessors, and Affiliates" section of the UFOC _________. the competition in the area. How long has a franchisor been in the business? c. design a logo for the unit. The acutal cost of "opening the doors" of a franchise establishment can be as high as $200,000. Why is the business being sold? A primary consideration for a potential franchisee is that the capital required to become a franchisee will likely be: about the same or potential more for starting a franchise business compared to starting an independent business in the same field. a. The advantages of franchising include: WebThe way to approach a new business venture is to think up a good or service that is unique. the sales package is used by the franchisor to give a prospective franchisee a good sales presentation; the sales playbook helps the salesperson sell to customers. Capital advantages Payroll d. B. A) Type of franchise 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. c. The accounting records of a company are kept separate from its owners. Which type of franchisor manual is specifically focused to this purpose? E) Local publicity campaigns. Which characteristic is not considered a positive of franchising? D. Number of channel members and degree of control. b. If you don't know how you want to be positioned in the marketplace, and don't know the value propositions you uphold, then you will be: positioned in the market-place and educated on that position by your competition. Milkshake Lending Company is a small privately owned firm providing venture capital to small businesses. Which is not a key question to ask when buying a business? The "Restrictions on What the Franchisee May Sell" section of the UFOC describes ____________. D. Single-unit franchises enjoy a favorable image among consumers. process for expanding a business or service through licensing arrangement. 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. Franchisees have the option of using the logo and symbols of the franchisor. The franchisor is the second party to the franchise agreement and is the owner of the unit or territory rights. Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. This resulted in the passage of the Uniform Franchise Offering Circular (UFOC). Which of the following is not a type of franchising according to the text? a. D) Many legal disputes Supplier Control. Selling a franchise to the franchisee a. The individual who buys the franchise is the Business related reasons for selling may include all but which of the following? E) None of the above is a type of franchising. The attitude of the customer is made up of three key factors. Chance invest money in the operation. Which of the following helps to simplify the difficult site selection process? Which of the following statement most accurately describes a franchise channel? Does a physical count correspond with the book count? a legal restraint of trade. a. Which of the following things is NOT true about the accounting process? c. Which of the following is not an advantage of a franchise? Franchisees may pay a fee that is separate from the royalty fee, often called a ________, to contribute to a shared advertising fund. Which of the following is true about co-branding? Why do most franchisees choose to go into business with a franchised company? a. Ellis owns a Subway franchise. NOT: sufficient time to integrate the brands MAYBE: natural synergy between the brands. E) All of the above, The term "FDD" stands for which of the following? Operational Control. There are six major organizational development tasks required of a franchisor to develop from a single unit firm into a growing franchise system. Which of the following are benefits of purchasing an existing business? prepaid utility bills C) Years of experience Which of the following organizations can assist him? Where should the business be located? a deferential sale of business clause. How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels? What type of competition exists? d. WebAll of the following are a new type of franchising opportunity except ________. C) Popularity On-site management In exchange for an ownership share, small businesses receive financing from a group of investors known as Strong franchisors have all of the following except ________. E. Single-unit franchises are a very low-cost method of selling. It takes special knowledge and skills to conduct an effective turnaround. None of the above, An analysis of the competition should look for ______. In purchasing an existing business the first question should be: "Why are you selling?". D. Franchising is an American business model that does not work well outside the U.S. An entity or invidiual granted the right to conduct business according to specified methods and terms of another party is known as a, A legal agreement between two parties in a franchise arrangement is referred to as a, benefits of becoming a franchisee include all of the following terms except, Franchise costs include all of the following expenses except. Master franchises do not allow individuals and organizations to buy the right to subfranchise within a delineated geographic territory. When Reno purchases the McDonald's she will be expected to supply, labor and capital and will own and operate the outlet. a. Advertising Importance of channel members and nature of product c. A. What amount is generally considered adequate? Which philosophy of expansion is, as a rule, the best method for franchisors? B) Positive relationships with their franchisees Identify the unique aspects to purchasing an existing business. c. b. c. d. Web4-family background. The Clayton Act makes it illegal for competitors to get together and set prices on the products or services they sell. c. Jennifer and Raleigh are considering starting a small business and are weighing the pros and cons of doing so. A. A. Franchisors provide significant operational assistance to franchisees. Compared to other types of businesses, the failure rate for franchises is __________. insurance "When sales continue to grow but are increasing at a decreasing rate" is associated with which stage of the product life cycle? Not coincidentally, these issues have become more prevalent and evident with the advent of A. The franchisor licenses its trademarked products to franchisees. E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. d. What is the key to convincing someone to purchase your franchise, product, or service? B. Which of the following is NOT an element of virtual relationship management in e-business strategy? C. Lodging. Changes in zoning which affect the business. C) Operations In the franchise industry, the person or business providing the rights to an individual for the local distribution and/or sales of a specified product or service is called the: Probably the earliest example of franchising in the United States is most likely to be: A major reason for success of franchising is that the franchisor can use all of the following from the franchisee EXCEPT for the franchisee's: Which of the following industries provides the earliest and lasting example of franchising in the U.S. economy? c.
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