Exam 4: Franchises and Buyouts

Jarrod is reading a detailed statement of the franchisor's finances,experience,size,and involvement in litigation.Jarrod is reading a Franchise Disclosure Document.

Match: a.co-branding b.master licensee c.multibrand franchising d.multiple-unit ownership e.noncompete clause f.non-disclosure agreement g.piggyback franchising h.product and trade name franchising -A franchise agreement granting the right to use a widely recognized product or name

Match: a.due diligence b.fair market value c.franchise d.franchise contract e.Franchise Disclosure Document f.Franchise Rule g.franchisee h.franchisor -The exercise of reasonable care in the evaluation of a business opportunity

Which one of these is not listed by the Small Business Administration as part of the necessary due diligence one should do before purchasing a business?​

The processing of a loan application can be completed more quickly if the franchising organization is registered with the U.S.Small Business Administration.

The offer and sale of a franchise are regulated by

What question is the least important when developing a franchise from an independent business?

Harold was given the chance to examine the tax returns and financial statements of a business he is considering for purchase.The seller asked him to sign a _____________ that prohibits Harold from sharing this confidential information with anyone else.

Martin operates an ABC franchise.Recently the franchisor has attempted to make changes to the contract that would increase Martin's costs so as to make the business unprofitable.The franchisor is engaging in:

The practice of putting one franchise right next to another is referred to as piggyback franchising.

There is no need to find out more information about a prospective franchise as the franchisor should be the primary source of information.

Stuart is interested in opening a QRS franchise.QRS requires up-front payment of $150,000.This amount represents:

Which source of franchise information is produced by a federal agency?

Darin is assembling a team of experts to help him through the process of evaluating a franchise opportunity.This team should include:

Match: a.co-branding b.master licensee c.multibrand franchising d.multiple-unit ownership e.noncompete clause f.non-disclosure agreement g.piggyback franchising h.product and trade name franchising -Ownership by a single franchisee of more than one franchise from the same company

Edward signed a contract allowing Francine to use sell products using his brand name so long as the product meets Edward's quality standards.Edward is:

Belinda signed a _____________ that is a legal agreement between two parties in a franchise arrangement.

Business format franchising is best illustrated by the system offered by

Cameron has established a successful business and would like to expand.He is considering becoming a franchisor.Before taking that step,Cameron should:

Consider this quote: "If you can't follow somebody else,don't buy a franchise." Which characteristic of a franchise does this quote describe?