Question 1

It is crucial for a potential franchise to answer the following question prior to signing a franchise agreement.

Accepted Answer

A) by buying and running this franchise is likely to make me happy 
B) buying this franchise will some all my future financial problems 
C) buying this franchise will make my parents and in-laws respect me 
D) none of the above 
A) by buying and running this franchise is likely to make me happy 
B) buying this franchise will some all my future financial problems 
C) buying this franchise will make my parents and in-laws respect me 
D) none of the above A

Question 2

The four "P's" of franchise include all of the following except:

Accepted Answer

A) product 
B) profitability 
C) promise 
D) people 
E) process
EASY 
A) product 
B) profitability 
C) promise 
D) people 
E) process
EASY C

Question 3

For a new franchisee joining a solid franchise system

Accepted Answer

A) much of the guesswork of running a business is removed. 
B) most of the mistakes made by an independent entrepreneur will be experienced 
C) the new franchisee is yet to learn and resolve all the "kinks" of running a business 
D) all of the above are true 
A) much of the guesswork of running a business is removed. 
B) most of the mistakes made by an independent entrepreneur will be experienced 
C) the new franchisee is yet to learn and resolve all the "kinks" of running a business 
D) all of the above are true A

Question 4

Popular franchise directories,which may be the primary first step in information collection for prospective franchisees include all but one of the following.Which should not be included?

Accepted Answer

A) the Franchise Handbook 
B) the New York Times 
C) the Executive Guide to Franchise Opportunities 
D) the Franchise Opportunities Guide 
A) the Franchise Handbook 
B) the New York Times 
C) the Executive Guide to Franchise Opportunities 
D) the Franchise Opportunities Guide

Question 5

About ( )percent of franchise systems provide some form of earnings claims for franchisees?

Accepted Answer

A) 5 percent 
B) about 25 percent 
C) about 40 percent 
D) about 70 percent 
A) 5 percent 
B) about 25 percent 
C) about 40 percent 
D) about 70 percent

Question 6

Rule 436 is a rule issued by ( )provides franchisors and franchisees with certain legal rights under federal law.

Accepted Answer

A) Interstate Commerce Commission 
B) Department of Commerce 
C) Federal Trade Commission 
D) U.S.Small Business Administration 
A) Interstate Commerce Commission 
B) Department of Commerce 
C) Federal Trade Commission 
D) U.S.Small Business Administration

Question 7

Over the counter business-oriented publications often include franchise-related information.Each of the following publications regularly provide such useful franchise information except for

Accepted Answer

A) Wall street Journal 
B) U.S.A.Today 
C) Women's Home Journal 
D) Entrepreneur Magazine 
A) Wall street Journal 
B) U.S.A.Today 
C) Women's Home Journal 
D) Entrepreneur Magazine

Question 8

The Disclosure Document in franchising means the same as:

Accepted Answer

A) Uniform Franchise Offering Circular 
B) "Rule 245" of the Sherman Anti-Trust Act 
C) the Walsh-Healy Act of 1970 
D) the commitment to no "tying" agreements between franchise systems. 
A) Uniform Franchise Offering Circular 
B) "Rule 245" of the Sherman Anti-Trust Act 
C) the Walsh-Healy Act of 1970 
D) the commitment to no "tying" agreements between franchise systems.

Question 9

Almost all franchising agreements are set up for a specified term,generally from

Accepted Answer

A) five to twenty years 
B) one to six years 
C) twenty to forty years 
D) ten to thirty years 
A) five to twenty years 
B) one to six years 
C) twenty to forty years 
D) ten to thirty years

Question 10

There are three central finance questions a prospective franchise must answer.Identify the question below is not a central finance question for a prospective franchisee.

Accepted Answer

A) Do I have enough cash to pay the fees and cover somewhere between 20-to-100 percent of the total amount required by the franchise system prior to opening? 
B) Can I find some one (or more)who will finance the amount that I can't cover? 
C) Additional sources of capital are likely to be needed.Can I get agreed upon sources of additional funds as needed to assure that sufficient working capital is available to me? 
D) Can I qualify for state,federal or local grants to assist in the acquisition of the franchise? 
A) Do I have enough cash to pay the fees and cover somewhere between 20-to-100 percent of the total amount required by the franchise system prior to opening? 
B) Can I find some one (or more)who will finance the amount that I can't cover? 
C) Additional sources of capital are likely to be needed.Can I get agreed upon sources of additional funds as needed to assure that sufficient working capital is available to me? 
D) Can I qualify for state,federal or local grants to assist in the acquisition of the franchise?

It is crucial for a potential franchise to answer the following question prior to signing a franchise agreement.

The four "P's" of franchise include all of the following except:

For a new franchisee joining a solid franchise system

Popular franchise directories,which may be the primary first step in information collection for prospective franchisees include all but one of the following.Which should not be included?

About ( )percent of franchise systems provide some form of earnings claims for franchisees?

Rule 436 is a rule issued by ( )provides franchisors and franchisees with certain legal rights under federal law.

Over the counter business-oriented publications often include franchise-related information.Each of the following publications regularly provide such useful franchise information except for

The Disclosure Document in franchising means the same as:

Almost all franchising agreements are set up for a specified term,generally from

There are three central finance questions a prospective franchise must answer.Identify the question below is not a central finance question for a prospective franchisee.

Franchising: History and Overview

Recognizing Franchising Opportunities

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

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

Exam 15: Investigating Franchise Opportunities

It is crucial for a potential franchise to answer the following question prior to signing a franchise agreement.

The four "P's" of franchise include all of the following except:

For a new franchisee joining a solid franchise system

Popular franchise directories,which may be the primary first step in information collection for prospective franchisees include all but one of the following.Which should not be included?

About ( )percent of franchise systems provide some form of earnings claims for franchisees?

Rule 436 is a rule issued by ( )provides franchisors and franchisees with certain legal rights under federal law.

Over the counter business-oriented publications often include franchise-related information.Each of the following publications regularly provide such useful franchise information except for

The Disclosure Document in franchising means the same as:

Almost all franchising agreements are set up for a specified term,generally from

There are three central finance questions a prospective franchise must answer.Identify the question below is not a central finance question for a prospective franchisee.

Franchising: History and Overview

Recognizing Franchising Opportunities

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

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