A) Fees and costs Which one of the following tasks is not one of these six major organizational development tasks? The "Restrictions on What the Franchisee May Sell" section of the UFOC describes ____________. inventory majority E. Franchising and franchising channels are not growing in other developed countries. equity? Pizza Hut One wants to make sure they are not buying into a fad but a viable long-term business. B. a. The action plan covers 3 primary areas: the owner, the finances, and other vital factors. b. E) All of the above, Which of the following aspects would the franchisor control in a business-format franchising situation? A trial period of at least 3 years C. Court permission D. Notice to the Which of the following small businesses could be categorized as being in the distribution industry? How is buying an existing business not like purchasing a franchise? Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________. age of the competition's owners. A) Provide a significant advantage for your business start-up None of the above, Who must negotiate the final deal? The owner may be in trouble with suppliers. d. Web4-family background. Regarding the interfaces between channel management and other marketing mix variables that exist in franchise channels, which statement is most accurate? The franchisor owns the trademark and business model. All of the following are disadvantages of franchising for the franchisee, except for: typically operate as a non-unionize business establishment. Who is correct? Capital advantages company name. Is the building heated with gas or electric? 9 Solved Knowledge Check 01 Which of the following statement Which of the following is not included in a partnership agreement? These include all of the following EXCEPT: Two primary points must be considered when a franchisor develops expansion plans for a franchise. John, an entrepreneur, approaches the firm with a proposal. saleable value. Richard has a motorcycle and ATV store. C) Uniformity E) Brand, Subway restaurants can be found ________. Which practice is a competitive concern for franchisees? B) Friends c. Strong franchisors have all of the following except ________. c. a deferential sale of business clause. b. c. 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. He is considering applying to small firms because he knows that small businesses have traditionally added _____ new jobs to the economy. plant Frianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. c. C) Encouraged B. c. D) Many legal disputes Chance d. old-old the owner's family stability and relationships. d. b. The party granting the license is the. payroll Entitle the franchisee to use the franchise's name. What factor generally determines which co-branding method is chosen by a franchisor? A. All of the following are a new type of franchising opportunity except, Any costing saving resulting from franchises purchasing power helps to offset other costs , such as franchise, Start - Up Standard require of franchisees may include which of the following, Products and service in a franchise may not be altered, added, or dropped without, in many instances, products or ingredients in a franchise must be purchased from, As a franchise one will benefits from the purchasing power of the franchisor to get, a provide a significant advantage for a business start-up, all of the following are advantages of franching except, all of the following are selected franchise fee and cost accrording to the text except, Franchisors are to provide operations manuals and training to their franchisees , which are valuable resource for success, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. This is an example o. Craig has $60,000 to invest in a new small business. E. All of the above statements are true. control exercised by the franchisor symbols and logos. E. Royalty fee. 40%, Which franchise is not included in the top ten franchises? E. Possible high level of managerial motivation fostered by franchising. A dealer who distributes product from a product line supplied by a franchisor is considered to be engaged in: A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising. a. You stop by a Carl's Jr. fast food restaurant and notice that they also have Green Burrito Mexican food. b. Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels. The franchisor provides a system for the franchisee to operate the business. c. Which one of the options below is not one of these critical customer perception factors? What is the primary purpose of information systems in a start-up franchise? is the principal governing mechanism of the franchisor-franchisee relationship. The Uniform Franchise Offering Circular _______. c. T/F, Conducting a thorough due diligence should always be accomplished if purchasing an existing corporation or franchise, but is unnecessary if acquiring a sole proprietorship. b. A) Type of franchise The government exercises very little control over sole proprietorships, A business that has the legal rights of a person and may have many owners is a, A business broker is a person who sells homes for a living, Which of the following antitrust legislation laws makes it illegal to discriminate by charging different prices to customers, The FDD contains all of the following information expect, the name and address of at least 200 current franchisees, Unlike regular corporations, an S corporation is not taxed as a business, Advertising fees for franchises are paid directly to the advertisers, An advantage of buying an existing business is that, A disadvantage of buying an existing business is that it may be poorly located. The control issues are: 1. Is usually a one-time flat fee paid by franchisees to franchisors. c. Ellis owns a Subway franchise. Terry's is a. Characteristics of a small business would include all of the following except. Identify the unique aspects to purchasing an existing business. Macy because the SBA's primary financial function is to guarantee loans. NOT: to improve operations at franchised units. d. The International Franchise Association is ________. Hobby Which of the following is an advantage to purchasing a franchise?. a. When Reno purchases the McDonald's she will be expected to supply, labor and capital and will own and operate the outlet. This program is part of the. H0:1222Ha:12>22. C. These franchises operate in environments with little competition. design a logo for the unit. For Jerry's Automobile Parts Fabricating business to qualify as a small business, it can employ no more than ___ people. C. Franchise agreement Which of the following is often referred to as the franchisee's "bible"? new-new franchisee time and effort are reduced The _________ is the entrepreneur who buys the franchise from the ________. a. a. Can you become a millionare by buying this business? b. a. The number of franchised business establishments has continued to growth in the U.S. Today there are approximately ( ) franchise businesses in operation. Business related reasons for selling do not include which of the following? Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. franchises have a very high success rate compared to other small businesses. 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. E) None of the above, All of the following are factors of franchise cost except ________. Changes in zoning which affect the business. a. True or false: An entrepreneur should explore what aspects of a franchisor-franchisee contract are negotiable by making a list of wants and desires. Business Brokers help entrepreneurs locate the funds necessary to start a business. Which of the following helps to simplify the difficult site selection process? b. 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. The most important area to examine prior to purchasing a business is company profitability. Which major question in his business plan does this statement address? C) Ensures ongoing support The potential value of any System to network with competing franchises. c. If you are looking to start a business that is creative and is not controlled by others, then franchising is your best option. Godfrey has just graduated from business school and is seeking employment. WebFrianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. B. How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels? Which of the following is not a type of franchising according to the text? NOT: it sometimes develops an imprecise picture of the franchise. Payroll can learn about the franchise from the ground up. Franchisee operational efficiency is more important than working relationships between franchisors and franchisees C) Penalty Which of the following is not a disadvantage of a major franchise? In 2016, the International Franchise Association reported that franchises in the United States (US) provided nearly ______ direct jobs. Actions by franchisors to void the contracts of franchisees in order to sell the franchise to someone else and collect an additional fee. Bringing two or more franchise brands together within a single enterprise. The exercise of reasonable care in the evaluation of a business opportunity. Which of the following statements regarding what franchisors include as part of their package are correct? Why might co-branding be beneficial for a mature market? it may be purchased at a bargain price. The term "upside gain and downside loss" refers to the profits the business can make and the losses it can suffer. Entrepreneurs should asses their skills and interests. The inventory should be examined for which of the following? What is the condition of the inventory? The business that represents 99.7 percent of all employers in the United States is a. a. What is the name of that program? Jennifer and Raleigh are considering starting a small business and are weighing the pros and cons of doing so. payment of a fee. Which of the following is NOT an element of virtual relationship management in e-business strategy? to identify factors which may pose major threats to or provide significant opportunities for the franchise system. E) All of the above, Franchisors are ________ to provide operating manuals and training to their franchisees, which are a valuable resource for success. d. How much of successful selling consists in simply listening to the prospective buyer? you. a. The most common form of business ownership in the United States is the corporatio. D. Number of channel members and degree of control. d. D. Reduce uncertainty Franchising and franchise channels continue to grow dramatically Meeting with every member of the current staff. Which of the following is true of the risk involved in buying an existing business facing bankruptcy? B. Franchises are governed by ________ laws and regulations. the exact status of the franchisor's intellectual property, such as logos, symbols, and words. What is the name of the business agreement Henry would sign? It has an established cash flow. c. The accounting records of a company are kept separate from its owners. This demonstrates which advantage of a small business? E. All of the above statements are accurate. Much franchise litigation has arisen over termination of owners. he/she is very straightforward about his/her interest, availability, and financial resources. a. B) Eases the issues of start-up development There are six major organizational development tasks required of a franchisor to develop from a single unit firm into a growing franchise system. Not coincidentally, these issues have become more prevalent and evident with the advent of In the United States, ___ account(s) for 97.5 percent of all identified exporters and produce(s) 31 percent of export value. What changes will be made? Which of the following best describes the industry she operates in? Which of the following is true about the serious prospective franchisee? the franchise (Check all that apply.) collaboration with suppliers through Internet, NOT: franchisors she will work very hard putting in long hours about six days a week, The SBA assists small-business owners entering the world markets by doing all of the following except, offering long term loans to US business owners. C. Training. Which of the following types of businesses benefit from being located near competitors? B. E. Single-unit franchises are a very low-cost method of selling. process for expanding a business or service through licensing arrangement. C. Increased regulatory scrutiny. all of the above, What is the largest source of new business ideas among men? By immersing them in a week-long training session in an actual store, All the following explain why franchising is so widespread EXCEPT. 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 A. c. should I have right of first-refusal on site selection? All of the above. Offer new products/services in new territories to new customers, One who owns and operates more than one franchise unit is known as a, NOT: Area Developer A) They may be announced or unannounced. Regulations that protect consumers include trademarks, zoning, regulations, and consumer protection laws. E) Local publicity campaigns. A. Identifying one or more target markets and creating a marketing mix that has focus upon a customer grouping's needs is the definition of. c. 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. All of these are ways a franchisor makes money; The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. sales taxes, business taxes, property taxes, employee taxes. brand-name appeal. Operational Control. d. a. c. D) Promotional support According to the text, which of the following is not a consideration when selecting a franchise? TRY: data analyses. Which of the following activities at the franchisor's headquarters office should be the center of attention? b. a trade restriction clause. Changes in leasehold conditions. health care a. In the "_________" section of the UFOC, the franchisor must disclose all fees that are charged to franchisees. a. track record of the other franchisees as proof of success All can be sidestepped. Supplier Control. limits placed on the franchisee regarding what it can do with the product and its production. Uniform Franchise Offering Circular (UFOC) have the ability to quickly adapt to change. In business format franchises the franchisor provides the complete system for operating the business. a. E) Type of product. Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. c. guidance from the franchisor Terry's Tires made just under $750,000 last year, according to the Small the franchisor still maintains a great deal of control. Jeremy has written a business plan for the business he would like to open. C. Potential to reduce distribution costs Joyce worked for a large printing company for two years then quit to take a job at a small sole proprietorship printing company. B. engaging in a continuous business relationship. WebAll of the following are a new type of franchising opportunity except ________. it can be either franchisor- or franchisee-driven. An advantage to buying an on-going business is WebA franchising strategy whereby a single franchise owns more than one unit in a given area is typically referred to as an area developer strategy T/F. Often, strategic initiatives fail because: They are seen as extra work to be accomplished in addition to existing work.
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