Exam 40: Franchises and Special Forms of Business

Richard Manufacturing Co.manufactures a product and licenses retail dealers to sell that product to the public.Richard does not sell to the public.This type of franchise is called a(n):

A strategic alliance partner is also a potential competitor.

Which of the following is true about the FTC franchise rule with respect to earnings projections made by a franchisor in materials provided to prospective franchisees?

A franchisor who violates FTC disclosure rules is subject to an injunction and civil fines.

Licensing occurs when the owner of intellectual property contracts to permit another party to use intellectual property.

A snowmobile manufacturer would franchise its dealers under which form of franchise?

Which statute would a franchisee be violating if she continued to use the trademark of a franchisor after the franchise had been terminated?

Franchisors are not permitted to make sales projections to hypothetical franchisees.

An assessment fee is a fee for the continued use of the franchisor's trade name,property,and assistance.

What type of law is franchise law?

A standard form disclosure document used by franchisors seeking franchises is:

Franchisors are never the owners of product formulas.

Typically a franchisee is a subsidiary of the franchisor.

Mike is considering opening a barbecue restaurant.He can either design his own,or obtain a franchise for a "Bubba's Roadkill Barbecue House," which does not actually serve roadkill.What factors should Mike consider in deciding which course of action to take?

What are the ethical issues involved in franchising businesses in foreign nations when doing so puts local businesses out of business and may cause cultural disruptions?

A franchisee is usually free to set its own cleanliness and quality standards.

Which of the following is not part of the FTC franchise rule?

The most important assets of a franchisor are its:

Two or more companies in the same industry who agree to ally themselves to accomplish a set objective would be considered to be a strategic alliance.

One advantage of franchising is that the different franchise outlets can have similar quality goods.