Exam 4: Franchises and Buyouts

A Krispy Kreme franchise located inside of the local Wal-Mart store is a type of franchise operation referred to as

Johnny Berrins is considering an investment in a nationally known franchise. With which source of information should he be most concerned?

One of the advantages of buying a franchise is that the purchaser has access to a proven business system.

One of the disadvantages of purchasing a franchise is that franchisers seldom provide adequate training programs.

The term franchising was derived from

The UFOC replaced the Franchise Disclosure Document (FDD) in May, 2008.

Financial statements can mislead a potential purchaser trying to develop an accurate business valuation.

A franchise is typically attractive because it offers training, financial assistance, and operating benefits.

The rights conveyed by a franchising agreement are referred to as

Which of the following is an excellent source of information about franchisers?

In addition to consulting an attorney, a potential franchisee should consider using the services of

The potential value of any franchise arrangement is defined by the rights outlined in the franchise contract.

The FDD disclosure must include information on

Which of the following is not a part of the definition of Franchising?

A document called the _____ is the accepted format for satisfying franchise disclosure requirements.

When purchasing a business during closing, which of the following is not a document that should be completed?

List four reasons for buying an existing business.

Because the offering and sale of a franchise are more intensely regulated by state and federal laws than is the establishment of a new business, individuals and/or firms involved in negotiating a franchise arrangement have limited need for legal counsel.