Question 1

The cost of a franchise may include:

Accepted Answer

A) royalty payments. 
B) advertising expenditures. 
C) the franchise fee. 
D) all of the above. 
A) royalty payments. 
B) advertising expenditures. 
C) the franchise fee. 
D) all of the above. D

Question 2

The Franchisor is the buyer of a complete method of doing business.

Accepted Answer

A) True 
 B)False  False

Question 3

The right to produce and sell the franchisor's product is called:

Accepted Answer

A) licensing. 
B) dealership. 
C) conversion franchising. 
D) none of the above. 
A) licensing. 
B) dealership. 
C) conversion franchising. 
D) none of the above. A

Question 4

Briefly explain the major advantages of buying a franchise over other start-up methods.

Accepted Answer

For full marks, at least three

Question 5

Explain the major provisions of existing or pending franchise legislation.Explain the growing trend for disclosure requirements.

Accepted Answer

For full marks, at least four major prov

Question 6

Major franchisors tend to be highly negotiable over contract details.

Accepted Answer

A) True 
 B)False

Question 7

Buying an existing franchise is legally simpler than buying a new one.

Accepted Answer

A) True 
 B)False

Question 8

The ability to innovate is an important characteristic for a franchisee.

Accepted Answer

A) True 
 B)False

Question 9

The most popular franchise arrangement is:

Accepted Answer

A) single-unit. 
B) multi-unit. 
C) multi-brand. 
D) master franchise. 
A) single-unit. 
B) multi-unit. 
C) multi-brand. 
D) master franchise.

Question 10

Dealership franchising tends to give the franchisee more freedom than business format franchising.

Accepted Answer

A) True 
 B)False

Question 11

On average, buying a franchise:

Accepted Answer

A) is the lowest risk start-up method. 
B) has the same risk as starting a brand new business. 
C) has the same risk as buying an existing independent firm. 
D) is risk-free. 
A) is the lowest risk start-up method. 
B) has the same risk as starting a brand new business. 
C) has the same risk as buying an existing independent firm. 
D) is risk-free.

Question 12

Canada tends to have stricter franchising regulations than most of the US.

Accepted Answer

A) True 
 B)False

Question 13

The owner of a territory franchise has the right to sell franchises to others.

Accepted Answer

A) True 
 B)False

Question 14

The biggest advantage of owning a franchise over an independent firm is likely:

Accepted Answer

A) training provided by the franchisor. 
B) brand recognition. 
C) advertising. 
D) marketing research. 
A) training provided by the franchisor. 
B) brand recognition. 
C) advertising. 
D) marketing research.

Question 15

Franchisors such as automobile manufacturers can dictate the prices charged by their franchisees.

Accepted Answer

A) True 
 B)False

Question 16

Most Multi-level Marketers make well-above-average incomes.

Accepted Answer

A) True 
 B)False

Question 17

The code of the Canadian Franchise Association gives franchisees:

Accepted Answer

A) freedom to form and join associations. 
B) the right to see the financial statements of the franchisor. 
C) the right to a full refund if dissatisfied. 
D) all of the above. 
A) freedom to form and join associations. 
B) the right to see the financial statements of the franchisor. 
C) the right to a full refund if dissatisfied. 
D) all of the above.

Question 18

With "floor plan" financing, title to the product in the franchisee's inventory is:

Accepted Answer

A) held by the franchisee. 
B) held by a third party. 
C) held by the franchisor. 
D) there is no title to the product. 
A) held by the franchisee. 
B) held by a third party. 
C) held by the franchisor. 
D) there is no title to the product.

Question 19

Which of the following would be an example of a Business Format franchise?

Accepted Answer

A) Petro Canada. 
B) Tim Horton's. 
C) Toyota. 
D) Popsicle. 
A) Petro Canada. 
B) Tim Horton's. 
C) Toyota. 
D) Popsicle.

Question 20

Most of the magazines and other publications about franchising:

Accepted Answer

A) are critical of the industry. 
B) forbid advertising of specific franchises. 
C) are published by franchisor associations. 
D) are published by franchisee associations. 
A) are critical of the industry. 
B) forbid advertising of specific franchises. 
C) are published by franchisor associations. 
D) are published by franchisee associations.

The cost of a franchise may include:

The Franchisor is the buyer of a complete method of doing business.

The right to produce and sell the franchisor's product is called:

Briefly explain the major advantages of buying a franchise over other start-up methods.

Explain the major provisions of existing or pending franchise legislation.Explain the growing trend for disclosure requirements.

Major franchisors tend to be highly negotiable over contract details.

Buying an existing franchise is legally simpler than buying a new one.

The ability to innovate is an important characteristic for a franchisee.

The most popular franchise arrangement is:

Dealership franchising tends to give the franchisee more freedom than business format franchising.

On average, buying a franchise:

Canada tends to have stricter franchising regulations than most of the US.

The owner of a territory franchise has the right to sell franchises to others.

The biggest advantage of owning a franchise over an independent firm is likely:

Franchisors such as automobile manufacturers can dictate the prices charged by their franchisees.

Most Multi-level Marketers make well-above-average incomes.

The code of the Canadian Franchise Association gives franchisees:

With "floor plan" financing, title to the product in the franchisee's inventory is:

Which of the following would be an example of a Business Format franchise?

Most of the magazines and other publications about franchising:

The Concept: What Business Will I Be in

Feasibility: How Do I Know It Will Work

Marketing: How Will I Get Customers

Operations: How Will I Organize the Work

Finances: How Will I Manage the Money

The Business Plans: How Are They Important

The Purchase Alternative: How Do I Buy or Buy Into an Existing Business

The Family Firm Alternative: How Do I Take Over My Familys Business

Managing for Growth: How Can I Expand My Business

Managing for Efficiency: How Can I Reduce My Costs and Expenses

Emerging Trends and Issues in Entrepreneurship: How Can I Prepare for the Future

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Exam 8: The Franchise Alternative: How Do I Buy a Franchise

The cost of a franchise may include:

The Franchisor is the buyer of a complete method of doing business.

The right to produce and sell the franchisor's product is called:

Briefly explain the major advantages of buying a franchise over other start-up methods.

Explain the major provisions of existing or pending franchise legislation.Explain the growing trend for disclosure requirements.

Major franchisors tend to be highly negotiable over contract details.

Buying an existing franchise is legally simpler than buying a new one.

The ability to innovate is an important characteristic for a franchisee.

The most popular franchise arrangement is:

Dealership franchising tends to give the franchisee more freedom than business format franchising.

On average, buying a franchise:

Canada tends to have stricter franchising regulations than most of the US.

The owner of a territory franchise has the right to sell franchises to others.

The biggest advantage of owning a franchise over an independent firm is likely:

Franchisors such as automobile manufacturers can dictate the prices charged by their franchisees.

Most Multi-level Marketers make well-above-average incomes.

The code of the Canadian Franchise Association gives franchisees:

With "floor plan" financing, title to the product in the franchisee's inventory is:

Which of the following would be an example of a Business Format franchise?

Most of the magazines and other publications about franchising:

The Concept: What Business Will I Be in

Feasibility: How Do I Know It Will Work

Marketing: How Will I Get Customers

Operations: How Will I Organize the Work

Finances: How Will I Manage the Money

The Business Plans: How Are They Important

The Purchase Alternative: How Do I Buy or Buy Into an Existing Business

The Family Firm Alternative: How Do I Take Over My Familys Business

Managing for Growth: How Can I Expand My Business

Managing for Efficiency: How Can I Reduce My Costs and Expenses

Emerging Trends and Issues in Entrepreneurship: How Can I Prepare for the Future

Filters