Question 1

Reasons a franchise system would have corporate locations,as well as franchisee locations are shown below,except for:

Accepted Answer

A) investors believe corporate ownership demonstrates that the franchise concept works. 
B) franchisor avoids potential conflict with franchisees that may rise based upon market and site locations. 
C) by having some corporate locations,the franchisor could take over,if a troubled or failing franchisee's location,if necessary. 
D) by having corporate location,the franchisor remains close to the ultimate customer. 
A) investors believe corporate ownership demonstrates that the franchise concept works. 
B) franchisor avoids potential conflict with franchisees that may rise based upon market and site locations. 
C) by having some corporate locations,the franchisor could take over,if a troubled or failing franchisee's location,if necessary. 
D) by having corporate location,the franchisor remains close to the ultimate customer. B

Question 2

Capital requirements that a potential franchisee must consider prior to becoming part of a franchise system include each of the following except for:

Accepted Answer

A) franchising fee 
B) startup expanses and inventory 
C) personal entertainment expenses 
D) working capital 
A) franchising fee 
B) startup expanses and inventory 
C) personal entertainment expenses 
D) working capital C

Question 3

There are several ways to protect a trademark,as indicated below.Which descriptive statement is NOT one of the legal ways of protecting a trademark?

Accepted Answer

A) coined trademark 
B) descriptive trademark 
C) suggestive trademark 
D) trouble-free trademark 
A) coined trademark 
B) descriptive trademark 
C) suggestive trademark 
D) trouble-free trademark D

Question 4

A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising.Which one of the following is not a major question at the onset?

Accepted Answer

A) do I have a prototype store or unit that can be replicated? 
B) can my product/service meet the test of distance? 
C) should I have right of first-refusal on site selection? 
D) what skills will be needed by a franchisee to run my business successfully? 
A) do I have a prototype store or unit that can be replicated? 
B) can my product/service meet the test of distance? 
C) should I have right of first-refusal on site selection? 
D) what skills will be needed by a franchisee to run my business successfully?

Question 5

A primary consideration for a potential franchisee is that the capital required to become a franchisee will likely be:

Accepted Answer

A) much greater than it would be for starting an independent business in the same field. 
B) much less than it would be for starting an independent business in the same field 
C) the amount of capital required is not of great concern to franchisor or franchisee.other factors are more important. 
D) about the same or potential more for starting a franchise business compared to starting an independent business in the same field. 
A) much greater than it would be for starting an independent business in the same field. 
B) much less than it would be for starting an independent business in the same field 
C) the amount of capital required is not of great concern to franchisor or franchisee.other factors are more important. 
D) about the same or potential more for starting a franchise business compared to starting an independent business in the same field.

Question 6

Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following?

Accepted Answer

A) firms in market niches that have broad product appeal and known consumer acceptance as long as the trends support long-term market viability and growth. 
B) firms in stable and growing industries,where the industry itself is unburdened by significant regulation. 
C) firms that have complex internal systems to execute,that draw from a limited pool of qualified employees,or require significant amounts for training to assure franchisee competence in delivery of the system's products or services. 
D) firms whose operating margins allow for franchisee fees to be charged and still leave an adequate r.o.i.for both franchisor and franchisee. 
A) firms in market niches that have broad product appeal and known consumer acceptance as long as the trends support long-term market viability and growth. 
B) firms in stable and growing industries,where the industry itself is unburdened by significant regulation. 
C) firms that have complex internal systems to execute,that draw from a limited pool of qualified employees,or require significant amounts for training to assure franchisee competence in delivery of the system's products or services. 
D) firms whose operating margins allow for franchisee fees to be charged and still leave an adequate r.o.i.for both franchisor and franchisee.

Question 7

Which of the following is a disadvantage for the franchisor?

Accepted Answer

A) franchisee motivation 
B) bulk purchasing 
C) loss of freedom and control as franchise system grows 
D) use of capital for reasons other than expansion 
A) franchisee motivation 
B) bulk purchasing 
C) loss of freedom and control as franchise system grows 
D) use of capital for reasons other than expansion

Question 8

All of the following are disadvantages of franchising for the franchisee,except for:

Accepted Answer

A) service costs imposed by the franchisor 
B) franchisor failure to meet support expectations of the franchisee 
C) typically operate as a non-unionize business establishment 
D) restrictions on freedom of ownership 
A) service costs imposed by the franchisor 
B) franchisor failure to meet support expectations of the franchisee 
C) typically operate as a non-unionize business establishment 
D) restrictions on freedom of ownership

Question 9

If a franchise system is struggling,not achieving long-term success.The first step for the franchisor to do is:

Accepted Answer

A) revisit and maybe change the franchisee business model 
B) contact and listen to each franchisee as possible,to determine what are the problems to be addressed. 
C) change the corporate business model,reduce corporate costs and reduce contact with franchisees. 
D) study what the competition is doing and change the franchise model to fit the models of its primary competitors. 
A) revisit and maybe change the franchisee business model 
B) contact and listen to each franchisee as possible,to determine what are the problems to be addressed. 
C) change the corporate business model,reduce corporate costs and reduce contact with franchisees. 
D) study what the competition is doing and change the franchise model to fit the models of its primary competitors.

Question 10

Which one of the following is NOT an advantage of franchising for the franchisee?

Accepted Answer

A) established product or service 
B) technical and managerial assistance 
C) quality control standards 
D) expansion 
A) established product or service 
B) technical and managerial assistance 
C) quality control standards 
D) expansion

Reasons a franchise system would have corporate locations,as well as franchisee locations are shown below,except for:

Capital requirements that a potential franchisee must consider prior to becoming part of a franchise system include each of the following except for:

There are several ways to protect a trademark,as indicated below.Which descriptive statement is NOT one of the legal ways of protecting a trademark?

A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising.Which one of the following is not a major question at the onset?

A primary consideration for a potential franchisee is that the capital required to become a franchisee will likely be:

Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following?

Which of the following is a disadvantage for the franchisor?

All of the following are disadvantages of franchising for the franchisee,except for:

If a franchise system is struggling,not achieving long-term success.The first step for the franchisor to do is:

Which one of the following is NOT an advantage of franchising for the franchisee?

Franchising: History and Overview

The Franchisor Business Plan

Franchisor Management, Organization and Administrative Policy

The Franchise Marketing Process

Selling Franchises and Marketing Research

Co-Branding

Managing the Franchisors Operations Process

Location and Site Selection

Accounting and Financial Statements: Presentation and Uses

Financial Management and Fiscal Planning Tools and Techniques

Information Systems in Franchising

Franchise Legal Documents

Trademarks, Copyrights, Patents, and Trade Secrets Stage Five: the Franchisee

Investigating Franchise Opportunities

Financing Your Franchised Business

Marketing the Franchisee Business

Managing the Franchisee Business Stage Six: the Franchiserfranchisee Relationship

The Franchising Relationship

Franchiser Support Services Stage Seven: Current Issues in Franchising

Social Responsibility and Business Ethics

International Franchising

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Exam 2: Recognizing Franchising Opportunities

Reasons a franchise system would have corporate locations,as well as franchisee locations are shown below,except for:

Capital requirements that a potential franchisee must consider prior to becoming part of a franchise system include each of the following except for:

There are several ways to protect a trademark,as indicated below.Which descriptive statement is NOT one of the legal ways of protecting a trademark?

A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising.Which one of the following is not a major question at the onset?

A primary consideration for a potential franchisee is that the capital required to become a franchisee will likely be:

Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following?

Which of the following is a disadvantage for the franchisor?

All of the following are disadvantages of franchising for the franchisee,except for:

If a franchise system is struggling,not achieving long-term success.The first step for the franchisor to do is:

Which one of the following is NOT an advantage of franchising for the franchisee?

Franchising: History and Overview

The Franchisor Business Plan

Franchisor Management, Organization and Administrative Policy

The Franchise Marketing Process

Selling Franchises and Marketing Research

Co-Branding

Managing the Franchisors Operations Process

Location and Site Selection

Accounting and Financial Statements: Presentation and Uses

Financial Management and Fiscal Planning Tools and Techniques

Information Systems in Franchising

Franchise Legal Documents

Trademarks, Copyrights, Patents, and Trade Secrets Stage Five: the Franchisee

Investigating Franchise Opportunities

Financing Your Franchised Business

Marketing the Franchisee Business

Managing the Franchisee Business Stage Six: the Franchiserfranchisee Relationship

The Franchising Relationship

Franchiser Support Services Stage Seven: Current Issues in Franchising

Social Responsibility and Business Ethics

International Franchising

Filters