Exam 12: Franchising

In the Franchise Relationship Model,the financial structure flows from pro forma analysis of customer demand and the cost associated with development and execution of the ________.

What license agreement binds the franchisee to the purchase of a specifically branded product?

The service delivery system is the basis for a franchise venture's competitive advantage.

The end result of the organization,execution,and transfer of the service delivery system is the firm's ________.

At the most fundamental level,the ________ is the defining quality of the opportunity recognition process.

The smart franchise uses the ever-growing system of franchisees and company outlets to continuously gather ________.

With regard to national media buys,"best efforts" relates to the quality and diversity of the advertising and PR support.

A demographic profile is a compilation of personal characteristics that enables the company to define the ________ customer.

Since operations are expanded by adding owner-operated units across a broad geography,retail franchising is not considered to be as pure a form of entrepreneurship as say,a medical device venture.

Which of the following is the most valuable asset in a franchise system?

If adding suppliers to the approved list is nearly impossible,this constitutes a de facto ________ agreement.

Not all franchises have (or even need)a well-defined service delivery system.

One limitation of franchising is that when demand is high,it is difficult to control the size of the overall venture.

What aspect of franchising does area of dominant influence (ADI)relate to?

Describe the ideal business format of a top-ranked franchise operation.

Describe the entrepreneurial nature of the franchising model.

Research to develop a demographic profile of the customer base will not include 'non-user' profiles.

Franchisor field support can be used to determine the stability and strength of the organization.

Franchising offers a thoughtful system for reshaping and executing a delivery system designed to extract maximum ________ from the opportunity.

The value of the franchise is enhanced when the delivery of the product validates the marketing message.