Are You Still a Franchisee When the Franchisor Controls Everything? Leticia has always wanted to own her own restaurant but has read that restaurants have a very high failure rate. track record of the franchisor B) They are always surprise inspections. In business format franchises the franchisor provides the complete system for operating the business. age of the competition's owners. Juan is most likely a franchisee in the ___ industry. A) Training prepaid utility bills Which of the following processes involves interpreting a relationship between two financial figures? opportunitites. 3- Customers already know you exist. The extra value a business can command in a sale is known as Developing a plan for the business. An individual looking to buy a franchise should _________. 2- Do not have to find employees NOT: customers Marketing strategy. B) Calling on existing franchisees Why might co-branding be beneficial for a mature market? In purchasing an existing business the first question should be: "Why are you selling?". a. According to the text, which of the following is not a consideration when selecting a franchise? a. c. c. b. c. An advantage to buying an on-going business is E) None of the above is an exception. His actions are possible because small businesses. What is the owner's personal net worth? The __________ is the principal governing mechanism for both the franchisor and franchisee. Several years ago the British government imposed a the market. 100, Which of the following costs add to the cost of franchising? Which of the following things is NOT true about the accounting process? b. Which of the following should the potential entrepreneur consider in developing a plan of operation? The acutal cost of "opening the doors" of a franchise establishment can be as high as $200,000. Degree of control and importance of channel members. Payroll tax. d. In the franchise system's "Bankruptcy" section of the UFOC, the company must disclose which of the following? alternative energy The action plan covers 3 primary areas: the owner, the finances, and other vital factors. Do you think this was a popular tax? planning, persistence, patience, people, profit (pg 136) what are the 3 A franchise is a legal agreement. Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following? Strong franchisors have all of the following except ________. A. Can you become a millionare by buying this business? Franchisors sometimes act like a business partner. If a franchise system is struggling, not achieving long-term success. d. Which is not a key question to ask when buying a business? Not coincidentally, these issues have become more prevalent and evident with the advent of the franchisor offering a standard,well-known product or service. Mary's Models is a successful model airplane store. All of these are ways a franchisor makes money; D) All of the above are types of franchising. He is considering applying to small firms because he knows that small businesses have traditionally added _____ new jobs to the economy. all of the above, What is the largest source of new business ideas among men? Is usually a one-time flat fee paid by franchisees to franchisors. franchising 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? All of the following are a new type of franchising opportunity except ________. Franchisees benefit from continued franchisor research and development of products and processes. B. The advantages of franchising include: determining markets in a geographical area with suitable customer demographics. all of the above. Ch. 5 business Flashcards | Quizlet b. All can be sidestepped. Franchisees may pay a fee that is separate from the royalty fee, often called a ________, to contribute to a shared advertising fund.