a franchisor can control all of the following except

A franchise is a business that markets a product or service developed by a franchisor, typically in the manner specified by the franchisor. Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________. E. Quality control standards. About fifteen percent of all marriages in North America fail. The "_______" section of the UFOC contains how disagreements will be resolved. loss of freedom and control as franchise system grows. b. His actions are possible because small businesses. Test the following hypotheses at the .05.05.05 level of significance. a. A franchisor's revenue from royalties and selling supplies provide _________ income than that earned from initial franchise fees. Business format franchises are prevalent in which of the following businesses? \end{aligned} all of the above. B) Designated suppliers a. B. The market research should be independent of the franchisor. How old is the business? C. Companies like Proctor & Gamble frequently use the franchise channel model for distribution of consumer goods. asset pricing. A) They may be announced or unannounced. new-new Who is correct? Organization the process of change within the business The motivation of franchise channel members has less to do with cooperation and partnerships than in conventional channels. c. D) Data regarding existing units He was referring to, the reality that small business workers are more innovative than workers in large businesses, The invention of insulin and power steering by small businesses are examples of the ability of small businesses to provide, Increases in productivity for the past 200 years are characterized by, new ways to do a job with less effort and at a lower cost. The start-up and ongoing assistance provided by a franchisor guarantees your success. accounts receivable All can be sidestepped. to identify factors which may pose major threats to or provide significant opportunities for the franchise system. True. A) Fees and costs c. Why is the owner selling? Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. D. System to network with competing franchises. provide continuing aid and a guidance to the person buying the franchise. b. A) Franchisor agreement Which one of the following is not one of the required factors for successful leadership? Which of the following small businesses could be categorized as being in the distribution industry? C) Encouraged The franchisee is bound by the terms the franchise contract. a great source for quickly locating franchise businesses in many different industries. c. They have heard that the disadvantages of small businesses include all of the following except. your accountant. alternative energy c. The term "upside gain and downside loss" refers to the profits the business can make and the losses it can suffer. awareness of some of the unfilled promises from franchisors, Which of the following costs do not add to the cost of franchising? old-new Which of the following statements is true about franchising? The number of franchised business establishments has continued to growth in the U.S. Today there are approximately ( ) franchise businesses in operation. control exercised by the franchisor a. Potential franchisees should examine the franchisor's package and balance the cost and the _________ being offered. c. income or wealth. D. Uniform Code of Justice (UCJ) One of the advantages of buying a franchise is that the purchaser has access to a proven business system. c. The prospective investor should get as much information as possible on the franchisor. old-old How does Auntie Anne's ensure that new franchisees understand the company's operational approach? 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. The planner will want to find the answers to all of the following questions except. explanation: Franchisees often report the following advantages: management training and support; brand-name appeal; standardized quality of goods and services; national advertising programs; financial assistance; proven products and business formats; centralized buying power; site selection and territorial protection; a greater chance for success. An advantage to buying an on-going business is Much franchise litigation has arisen over termination of owners. A. Franchisors provide significant operational assistance to franchisees. C. Franchise fee. Supplies Which of the following would not be a good reason to start a small business? Operational Control. B) Contractual obligations The implementation of marketing mix variables in franchise channels is less fluid and flexible than in conventional channels. b. The franchisor licenses its trademarked products to franchisees. A. E) All of the above, Products and services in a franchise may not be altered, added, or dropped without ________. 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. b. 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. C. Multi-unit franchises require the franchisor to provide greater operational assistance to their franchisees than do they do for single-unit franchises. 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? Maria has purchased a Subway franchise. b. Who is responsible for these activities and outcomes? Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees. the financial picture of the business. The "Trademarks" section of the UFOC details ___________. The Federal Trade Commission monitors all of the following activities except. One wants to make sure they are not buying into a fad but a viable long-term business. It is a channel used exclusively for distribution of consumer durable goods. In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit. E) Employees, A franchisor's record of success can ________. C. These franchises operate in environments with little competition. Which of the following is true regarding inspections conducted by franchisors? Depreciation. and Develop strategic plans for the franchise firm. a. b. c. procedures are essentially "set in stone.". Which of the following things is NOT true about the accounting process? All of the above, Have a seller retain a _____interest in the business. D) Promotional support Franchise agreement usually allow the franchisee to operate the business _________. 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. Which one of the following is not one of the levels for development? c. A) Internet franchises B) Conversion franchises C) Co-branding franchises D) Piggybacking franchises E) Leapfrogging franchises E) Leapfrogging franchises Any cost saving resulting from franchising C) Specific times must be scheduled. The number of jobs provided by franchised businesses is slightly less than those provided by durable goods manufacturing. b. Education courses He works many hours from January through April but in May takes a month-long vacation and the rest of the year works part-time. the owner's reason for selling. c. B) Advertising and promotion d. E) Local publicity campaigns. These are questions directly associated with which phase of marketing strategy for a franchise system? The most important section of the business plan is: In urban areas, approximately how much of a store's business is done by people who live or work within a five-minute drive or walk of the location? prepaid expenses a. The franchisor is the second party to the franchise agreement and is the owner of the unit or territory rights. C) Never provide help for start-up C. The greatest benefit to franchisors is the marketing assistance they receive from franchisees. Chapter 1-4 Flashcards | Quizlet A) Success B. 40%, Which franchise is not included in the top ten franchises? Low expectations among franchisees A lawyer b. economic efficiency? d. Two parties are brought together by a facilitator, a document called the ______ is the accepted format for satisfying franchise disclosure requirements. According to the text, which of the following is not a consideration when selecting a franchise? c. d. b. a. 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. This is the most common form of franchise channel structure. Spend a significant amount of time being visible. opportunitites. E) None of the above is an exception. Chance B) In convenience stores Which one below is not one of these tried-and-true approaches for growth? d. Marketing strategy. 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? Which of the following is true regarding the costs of franchises? If you are looking to start a business that is creative and is not controlled by others, then franchising is your best option. Which one of the following tasks is not one of these six major organizational development tasks? The Antitrust Division of the Federal Trade Commission takes legal action against any business it believes has tried to monopolize an industry. b. Upon paying the upfront fee and continuing royalties, the franchisor grants the franchisee the rights to use Reno is a. pay a fee. D) Both A and B Which of the follow statements about starting a franchise are similar to starting a business from scratch? D) Federal Disclosure Document c. Collecting a percentage of sales from each franchisee Brent and Wendy plan to open a new business. B. It is structured between single-unit and multi-unit franchises. An advantage associated with franchising is number of competitors. Ch.16 Flashcards | Quizlet b. He wants the business to succeed. After all of your investigation into a franchise, the final decision should be up to a. Which one of the following statements is true? The franchisor owns the trademark and business model. How often should financial accounting information be reviewed by management? What changes will be made? One of the more interesting ratios for franchising is the Location Selection Ratio or Sales/Costs ratio. The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. A) Recognition Consideration occurs when one party in a contract offers or agrees to do something and the other party accepts. a. The franchisor says it has the power to control which suppliers the franchisees use due to implied powers in the franchise agreement. B) Brand recognition d. E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. Importance of channel members and nature of product There is no need for legal representation when entering into a franchise agreement. Which of the following statements best describes franchise channel structure? How much of successful selling consists in simply listening to the prospective buyer? B) Consistency There are several ways to protect a trademark, as indicated below. Franchisors often determine a franchisee's likelihood of success by looking at two things. b. E) Not be counted on, A) Provide a significant advantage for your business start-up, All of the following are advantages of franchising except ________. b. 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 best describes the industry she operates in? If a franchise system is struggling, not achieving long-term success.

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