Exam 40: Franchises and Special Forms of Business

State franchise administrators developed a uniform disclosure document called the Uniform Franchise Offering Circular.

Gloria wants to franchise her carpet cleaning business.Under the Federal Trade Commission rules on disclosure,which of the following items does Gloria not need to disclose?

Once a franchisee has been given a franchise,she may:

Joint ventures are usually formed to pursue ongoing business operations rather than to focus on a single project or transaction.

Most fast-food franchises are chain-style franchises.

Rachel has a business that she has franchised to hundreds of franchisees over the last twenty years.In seeking additional franchisees,which of the following is true about financial disclosures to potential new franchisees?

Which of the following is true in a typical franchise situation?

Bob obtains a franchise to operate a "Tofu Sweets" retail dessert store.All of the store's desserts are tofu-based.Each dessert treat has a trademarked name,and is made using a secret formula and process.As a franchisee,Bob purchases some of the items ready to sell,but others must be individually prepared in the store.After operating the store for a few months,Bob starts buying the tofu for the items made in the store from another source because it is less expensive.The quality is not as high,but most customers do not seem to notice the difference.The franchisor terminates Bob's franchise,but he immediately opens his own store under the name "Sweet Tofu Treats" and begins selling products identical to those that were prepared at the "Tofu Sweets" store.What claims could the "Tofu Sweets" franchisor bring against Bob? Discuss each of them.

Richard wants to franchise his pastry business.However,he has no knowledge of what laws govern franchises.Richard comes to you for advice.Which laws govern franchises of this type?

Jonathon has a business that he has franchised to 10 franchisees over the last 6 years.In seeking additional franchises,which of the following is true about financial disclosures to potential new franchisees?

The federal agency that covers franchise law is:

Why has the federal government chosen to regulate the activities of franchisors? Why are parties to franchise agreements not given the same flexibility and freedoms as in most other contracts?

Which of the following is not one of the fees typically found in a franchise agreement?

The federal requirement related to franchisor disclosure to prospective franchisees is found in the:

A soft drink company would franchise its bottling plants under which form of franchise?

A company that has a franchise to manufacture and distribute Coca-Cola has a processing plant franchise.

Which of the following items are generally not found in a franchise agreement?

Which of the following is not an advantage of franchising?

An automobile dealership is an example of a distributor franchise.

The Lanham Trademark Act allows franchisors as well as others to register their trademarks and service marks with the Patent and Trademark Office in Washington,D.C.