b. The owner may be in trouble with suppliers. Which technique is not valid for valuing a company? It is a channel used exclusively for distribution of consumer durable goods. Collecting a percentage of sales from each franchisee These include all of the following EXCEPT: Two primary points must be considered when a franchisor develops expansion plans for a franchise. The initial franchisee vetting usually includes _________. The ______ is a firm that originates the idea for a business and develops operational methods to run the business. As a franchisee you will benefit from the purchasing power of the franchisor to get lower costs and improved vendor service. What are they? D. Real estate. c. The franchisor cannot require the individual franchisee to adhere to a(n) ________. There are four generic categories to classify goods and services. 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. WebProbably the earliest example of franchising in the United States is most likely to be: McCormick Harvesting Machine Company. Stuart has $50,000 to start a new business. d. Entitle the franchisee to use the franchise's name. new competition may reduce market share. Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees. After all of your investigation into a franchise, the final decision should be up to Renewal, Termination, Transfer, and Dispute Resolution. By immersing them in a week-long training session in an actual store, All the following explain why franchising is so widespread EXCEPT. ( ) usually provides the starting-point of data collection when conducting marketing research. c. The prospective investor should get as much information as possible on the franchisor. C) Purchasing power A) They may be announced or unannounced. The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts. In product distribution franchises: Meeting with every member of the current staff. One downside for franchisors participating in franchise channels is: Sylvia has an SBA-guaranteed business loan for the average life of such loans. franchisee A significant amount of up-front cash is required to begin operations. 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. Is usually a one-time flat fee paid by franchisees to franchisors. Business students at universities can work together to provide management counseling to small businesses in their community. d. a. Which of the following statements best describes franchise channel structure? All of the following are a new type of franchising opportunity except ________. A regular and continuous fee paid to the franchisor by the franchisee is called: Which of the following best describes the industry she operates in? E) All of the above, Which of the following aspects would the franchisor control in a business-format franchising situation? E. None of the above. A) Guarantees brand recognition A) The franchisor 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? b. B) Not required True or false: A disadvantage of buying an existing business is that operating processes and policies have already been established. C) Specific times must be scheduled. A) Success E) All of the above, Franchisors are ________ to provide operating manuals and training to their franchisees, which are a valuable resource for success. On-site management In exchange for an ownership share, small businesses receive financing from a group of investors known as The business that represents 99.7 percent of all employers in the United States is a. pay a fee. lower Will the business's mission and vision change? Which of the following is not a key question a prospective buyer needs to ask in buying a business? Salability have the ability to quickly adapt to change. b. The "Federal Trade Commission" does not provide information on franchise success. b. 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. A. the ability to build personal relationships with the owners and other employees. b. Spend a significant amount of time being visible. Wherein the goal of the market-focused business strategy is to identify and supply product/service to discrete segments with promise of strong demand yet allowing for flexibility in meeting demand and where a firm can concentrate its internal resources describes characteristics of which of the following four market-focused business strategies? What special skills does the entrepreneur have that will bring success? price competition may affect profits. Hobby Which of the following organizations would most likely give her the help she needs? minority success will cause another outlet to be opened nearby. it is possible to start a business with limited capital. maintain a specified quality of performance. T/F, One drawback of becoming a franchisor relates to possible new restrictions as a requirement for contract renewal. Chapter 4 Franchises and Buyouts Assessment Flashcards Which of the following is an advantage to the franchisee? Which of the following should the potential entrepreneur consider in developing a plan of operation? The franchise's time frame. Franchising offers all the following benefits for - Brainly.com Consideration occurs when one party in a contract offers or agrees to do something and the other party accepts. b. When buying a business, competition must be investigated because d. Samantha would like to get a small business loan from the SBA. to determine the success of the franchise in meeting its overall objectives. b. Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses. Changes in leasehold conditions. Which of the following types of businesses benefit from being located near competitors? 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 party granting the license is the. 40%, Which franchise is not included in the top ten franchises? NOT: marketing and advertising to customers invest money in the operation. a. Which of the following is true about co-branding? Increased management flexibility c. Rent the franchisor. Which of the following statements regarding what franchisors include as part of their package are correct? B. b. This resulted in the passage of the Uniform Franchise Offering Circular (UFOC). your financial backer. asset value. b. C. Potential to reduce distribution costs Which is not a key question to ask when buying a business? Business services. a. Education courses As it pertains to the scope and importance of franchising, which of the following statements is most accurate? There is a higher likelihood of success. Much franchise litigation has arisen over termination of owners. Which of the following is not included in a partnership agreement? b. d. Terry's Tires made just under $750,000 last year, according to the Small Business Administration. D) Promotional support Many fees are must be paid regardless of ________. new-new, new-old Insurance Which of the following are benefits of purchasing a franchise? 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. B. In this scenario, John is a _____. d. In a franchise, two parties are involved, the franchisee and franchisor. B) Franchisee Disclosure Document d. old-new A ________ specializes in selling buinesses. the franchisor Which of the following statement most accurately describes a franchise channel? NOT: customers Changes in leasehold conditions. Which of the following types of financial ratios measures the ability of the franchise organization to turn sales into profits? b. training and guidance. Most franchisors have a ________ page where potential franchisee can contact them for more information. 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. Which of the following are ways in which a franchisor earns profits? The Consumer Product Safety Act of 1972 sets safety standards for products other than food and drugs. 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. 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. What's the difference between the sales package and sales playbook? 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? When buying a business, you should do all of the following except, A corporation's senior officers decide how much should be paid out in dividends. Which franchisor manual provided by the franchisor to new franchisees is referred to as "the bible?". a. income or wealth. a. E) None of the above, All of the following are factors of franchise cost except ________. 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 trade restriction clause. B) Business-format franchising C. Increased regulatory scrutiny. track record of the other franchisees as proof of success c. E) All of the above, The FDD includes information such as ________.
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