a franchisor can control all of the following except

B) They are always surprise inspections. This includes all of the following except: determining markets in a geographical area with suitable customer demographics. You stop by a Carl's Jr. fast food restaurant and notice that they also have Green Burrito Mexican food. A. pay a fee. Franchises include the business name and a general plan for business operations. Evaluating franchise opportunities include finding out more about which of the following? How long has a franchisor been in the business? c. b. Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels. franchiser C) Franchisees "When sales continue to grow but are increasing at a decreasing rate" is associated with which stage of the product life cycle? c. The accounting records of a company are kept separate from its owners. NOT: it sometimes develops an imprecise picture of the franchise. The action plan covers 3 primary areas: the owner, the finances, and other vital factors. d. all of these are reasons it could be beneficial. Because of disputes between franchisors and franchisees, a program was instituted to arbitrate them. fast and selective distribution of products. Is the building heated with gas or electric? Policies and procedures for running the business. Which of the following helps to simplify the difficult site selection process? E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. One downside for franchisors participating in franchise channels is: By immersing them in a week-long training session in an actual store, All the following explain why franchising is so widespread EXCEPT. The way to approach a new business venture is to think up a good or service that is unique. The category most franchise systems are in is the one that has focus on product or service qualities or characteristics with prices being a second-level or a lower order concern to the purchaser. a. McDonalds is the only franchise available for ownership internationally. In product distribution franchises: If he seeks the average-size SBA-guaranteed business loan he will borrow, Money invested in small, new, or struggling firms that have the potential to become very successful is called. A potential franchisor is concerned that the franchisees will destroy the reputation of the company and end up hurting his business. This category of information offers the distinct advantages low cost and quick availability. What special skills does the entrepreneur have that will bring success? A) The franchisor inventory turnover. a waiver of competition clause. A) Training Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution. use of private labels to brand or trademark product or service. d. c. Charging for company-specific training courses and materials. A) Internet franchises B) Conversion franchises C) Co-branding franchises D) Piggybacking franchises E) Leapfrogging franchises E) Leapfrogging franchises Any cost saving resulting from In business format franchises the franchisor provides the complete system for operating the business. old-old Prior job In the "_________" section of the UFOC, the franchisor must disclose all fees that are charged to franchisees. b. D. Reduce uncertainty Property, plant, and equipment is recorded at cost (minus any accumulated depreciation) Changes in leasehold conditions. c. There is one thing every franchise system knows. In the United States, ___ account(s) for 97.5 percent of all identified exporters and produce(s) 31 percent of export value. Franchisees that create a poor brand image through bad customer service _________. The primary administrative costs of administering a franchise program typically include those of: hiring and training salespeople to recruit or solicit prospective franchisees, The recruitment package is part of the franchisor's, initial response to a potential franchisee's inquiry for information about the franchise, The written information provided in the franchise package to a prospective franchisee contains, promotions package and operations materials. b. Which of the following processes involves interpreting a relationship between two financial figures? c. System to network with competing franchises. b. C. Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels. 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. When purchasing an existing business, the prospective owner should conduct an assessment of the current group of employees. c. C) Purchasing power C) Any suppliers 2- Do not have to find employees NOT: asset utilization for the business all of the above, Coming up with a unique good or service is a _____approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____approach. A. The "Restrictions on What the Franchisee May Sell" section of the UFOC describes ____________. C. Nature of product and number of channel members Which is not a start-up expense? on their support for important areas such as accounting, marketing, and training. C. While the number of franchises has grown, the number of kinds of franchises has remained constant 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. D. Single-unit franchises enjoy a favorable image among consumers. C. Companies like Proctor & Gamble frequently use the franchise channel model for distribution of consumer goods. & H_0: \sigma_1^2 \leq \sigma_2^2 \\ B) Business-format franchising Does a physical count correspond with the book count? Who is correct? C. The franchisor provides little beyond a license to use its trademarked products. Marilyn and Macy are arguing about the primary financial function of the Small Business Administration. 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. What is the name of that program? loss of freedom and control as franchise system grows. Samantha would like to get a small business loan from the SBA. Sales tax. A(n) _______ _______ is a basic contract generated by a franchisor for all franchisees. c. b. 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. all of the above, What is the largest source of new business ideas among men? Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. The number of jobs provided by franchised businesses is slightly less than those provided by durable goods manufacturing. Which major question in his business plan does this statement address? 3- Customers already know you exist. 7-eleven Inc. goods. a. The ability to leave the venture if an entrepreneur does not enjoy the business is severely limited. Which of the following are ways in which a franchisor earns profits? b. b. Which of the following is NOT one of the four P's of selling? In this scenario, John is a _____. When buying a small business you need to know all of the following items except: A franchisee generally receives which of the following when purchasing a business? the competition in the area. The local Small Business Administration Office D. They are most common among automobile and soft drink channels. c. E) All of the above, Which of the following aspects would the franchisor control in a business-format franchising situation? A) Success E. Possible high level of managerial motivation fostered by franchising. d. you. Negotiating a deal to acquire exactly what is required from the operation. Developing a plan for the business. b. Degree of control and importance of channel members Two parties are brought together by a facilitator, a document called the ______ is the accepted format for satisfying franchise disclosure requirements. Darrel is considering expanding the business by franchising. A) Accounting E. Franchisees provide significant operational assistance to franchisors. It is a channel used exclusively for distribution of consumer durable goods. An existing business has the benefit of having an established set of processes. D) Be proven franchisor. The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds what? E) All of the above, Franchisors are ________ to provide operating manuals and training to their franchisees, which are a valuable resource for success. new-new, old-old new-new Companies that invest in small businesses. Identify the unique aspects to purchasing an existing business. This is the most common form of franchise channel structure. 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? A lawyer A) Self-reflection The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. All of these are ways a franchisor makes money; Short-term obligations created by the franchisee in buying supplies, materials or services associated with running the business are referred to as: Often considered the most critical financial component of working capital is, NOT: accounts receivable process for expanding a business or service through licensing arrangement. There is an established set of process. your accountant. True or false: An entrepreneur should explore what aspects of a franchisor-franchisee contract are negotiable by making a list of wants and desires. c. B. There are approximately ___ businesses in the United States. insurance 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 d. D) In military bases Attorneys and CPA firms Four factors are important in determining the size and shape of a primary service area (PSA). Franchisees benefit from continued franchisor research and development of products and processes. Automobile dealerships and ___ were the primary uses for franchises in the early days of franchise agreements. B. discloses any predecessor to the current business. Selling supplies to the franchisee As a franchisee you will benefit from the purchasing power of the franchisor to get lower costs and improved vendor service. c. E) All of the above, The FDD includes information such as ________. c. T/F, One drawback of becoming a franchisor relates to possible new restrictions as a requirement for contract renewal. Which of the following is a true statement pertaining to single-unit franchises? E) Local publicity campaigns. symbols and logos. the franchisor E) Type of product. The franchisee is bound by the terms the franchise contract. franchisee The franchisor provides a system for the franchisee to operate the business. Which characteristic is not considered a positive of franchising? This means that it is a riskier purchase than the purchase of a franchise. \end{aligned} a. This is an example o. Craig has $60,000 to invest in a new small business. Before we discuss who gets control of the franchise operations, lets clear up some terms about the people involved in the franchise model. The franchisor owns the trademark and business model. Upon paying the upfront fee and continuing royalties, the franchisor grants the franchisee the rights to use the trademark and business model. a. Terry's is a. Characteristics of a small business would include all of the following except. whether employees with key skills will stay or leave. Rent the franchisee A. B) Not required the financial picture of the business. A) Franchisor agreement the market. Entrepreneurs should asses their skills and interests. Hobby E) All of the above, The formula provided by the franchise does which of the following? WebProbably the earliest example of franchising in the United States is most likely to be: McCormick Harvesting Machine Company. WebThe purchaser of a franchise is called the franchisor. Where should you retire someday? C. Franchise fee. Which of the following is true about co-branding? Which of the following is not included in a partnership agreement? alternative energy All can be sidestepped. The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs. c. Trade associations for the industry. all of the above. Depreciation. Maria has purchased a Subway franchise. Which of the following is an advantage to purchasing a franchise?. Why is the owner selling? a. To be a successful leader, Jim Peterson, franchisor and former President of the IFA, believes it is necessary for four factors to exist for a person to be a successful leader. the owner's family stability and relationships. 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. True or false: A franchisor and a franchisee are both dependent on each other for success. The reason franchises have been a popular form of business is due to ___________. All of the above. The most common form of franchising today is one in whic. Richard orders some Harley-Davidson Trikes for his inventory. a. b. d. D) Data regarding existing units opening product inventory. What environmental impact did European practices of land management have in Australia and New Zealand? a. E) None of the above is a type of franchising. A) In traditional stand-alone units Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses. the franchisor still maintains a great deal of control. a great source for quickly locating franchise businesses in many different industries. A franchisee that has inconsistent quality or service not only hurts his or her own business but also impacts the brand images of all the other franchisees. Which of the following is a disadvantage for the franchisor? a. the franchise. They have heard that the disadvantages of small businesses include all of the following except. 5-age. Master franchises do not allow individuals and organizations to buy the right to subfranchise within a delineated geographic territory. A key question to ask when buying an on-going small business is which of the following? Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one? A. One of the advantages of buying a franchise is that the purchaser has access to a proven business system. franchise Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. Can you become a millionare by buying this business? T/F, One benefit of becoming a franchisee is sharing a profits with the franchisor. A significant amount of up-front cash is required to begin operations. The _________ has the responsibility for the business location, of establishing the business, and of building the storefront. The advantages of franchising include: C) Popularity What is a realistic number for a sample size when doing market research? It has an established cash flow. a. D. Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. Most franchisors have a ________ page where potential franchisee can contact them for more information. Why would a franchise system monitor its external environment? of dollars instead of units. Which of the following is NOT an element of virtual relationship management in e-business strategy? A) Established multiple franchises An understanding of customers buying patterns before the business begins operations. b. d. d. D. Is based on a percentage of the franchisee's gross sales. 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. The inventory should be examined for which of the following? Reno is a. NOT: inventory management and recovery. John, an entrepreneur, approaches the firm with a proposal. Which of the following are areas that the potential franchisee may be able to negotiate with the franchisor? accounts receivable C) Inclusive franchising C) Encouraged the ability to build personal relationships with the owners and other employees. a deferential sale of business clause. Pizza Hut The "Trademarks" section of the UFOC details ___________. He wants the business to succeed. c. Which of the following are benefits of purchasing a franchise? B) Designated suppliers Consideration occurs when one party in a contract offers or agrees to do something and the other party accepts. It is most likely that, it may take several years for this business to begin to show a profit, Barrack opens a bagel shop and at the end of each day has five dozen bagels left over that he cannot sell the next day due to health code restrictions. Why is the business being sold? b. D) Removes the creativity and freedom D) The community franchise fees A. As a class assignment, business students were told to prepare a business plan for a business they would like to own. C) Visiting the franchise headquarters D) Doing Internet research small businesses create cyclical unemployment, Small firms usually sell parts and assemblies to large firms because the large firms have found that, it is less expensive than making their own. Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following? quality of the competition. Communications between franchisors and franchisees is one-way, performance data that flows from the franchisee to the franchisor. C) Franchisor Disclosure Document Which of the following are benefits of purchasing an existing business? a. NOT: prospective franchises being recruited into the system. d. The most significant advantage for a franchisee is the increased probability of success. It is uncommon for a franchisor to handle the national and regional media purchasing for a franchisee. According to the SBA, in 2012 women were 51 percent of the U.S. population, and owned at least ___ percent of all small businesses. 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? When Reno purchases the McDonald's she will be expected to supply, labor and capital and will own and operate the outlet. Which of the following types of businesses benefit from being located near competitors? Frianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. If a franchise system is struggling, not achieving long-term success. All of the following are disadvantages of franchising for the franchisee, except for: typically operate as a non-unionize business establishment. b. Which of the following activities at the franchisor's headquarters office should be the center of attention? Identify which generic category fits most franchise systems below. What is the key to convincing someone to purchase your franchise, product, or service? What amount is generally considered adequate? High-tech ___ entrepreneurship is exploding. d. Identifying one or more target markets and creating a marketing mix that has focus upon a customer grouping's needs is the definition of. d. Which type of franchisor program offered to franchisees is based on the general notion that new franchisees have little or no specific business knowledge about the franchise system? E) None of the above is an exception. D. The challenges managing a franchise channel are fundamentally the same as those encountered in conventional channels. Which of the following statement most accurately describes a franchise channel? d. The Small Business Administration offers many courses to individuals interested in going into business or improving his or her business. minority All of the following are a new type of franchising opportunity except ________. Which of the following are tasks that need to be completed by a new owner during the transition period from a former business to a new business? if employees are leaving, will enough remain to operate the business. There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base. Godfrey has just graduated from business school and is seeking employment. Portica knows the customers of her hat shop by name and knows each of their preferences. Only franchisees operating multi-unit franchisees can own more than a single franchise.. 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 Which philosophy of expansion is, as a rule, the best method for franchisors? Which of the following is NOT a component of a properly developed franchisor plan? After doing routine background checks, the firm permits John to open a branch of the firm in a given area, use the firm's name, and operate a business within the guidelines of an agreement.
Bellevue High School Famous Alumni, How Tall Is Woody From Married At First Sight, Ballet Rambert Peaky Blinders Tickets, Farrow And Ball Matched To Benjamin Moore, David Meredith Obituary, Articles A