Question 1

When its time to sell or retire,most franchisors will cooperate with the franchisee intent to exit

Accepted Answer

A) but are not usually interested in helping the franchisee find a buyer for the business 
B) other franchisees are not likely to among those persons with intent or interest to purchase another franchise unit 
C) and will stand aside to allow the franchisee to sell to whomever is found as a buyer of the business 
D) none of the above is an accurate statement 
A) but are not usually interested in helping the franchisee find a buyer for the business 
B) other franchisees are not likely to among those persons with intent or interest to purchase another franchise unit 
C) and will stand aside to allow the franchisee to sell to whomever is found as a buyer of the business 
D) none of the above is an accurate statement A

Question 2

Preparing a financial package by a franchisee is meant to assist in the generation of equity investment or debt backing for the startup and operation of the business venture.When preparing the financial package for presentation,the first parties to consider when writing the financial package should be:

Accepted Answer

A) the franchisor 
B) other franchisees of the same franchise system 
C) the area developer or Director of Franchising for the franchise system 
D) the local bank,loan office or investor to understand the operations,functions and potential profitability of the franchise. 
A) the franchisor 
B) other franchisees of the same franchise system 
C) the area developer or Director of Franchising for the franchise system 
D) the local bank,loan office or investor to understand the operations,functions and potential profitability of the franchise. D

Question 3

The executive summary part of the financial package

Accepted Answer

A) details how the business intends to generate its profit through the descriptions of products or services offered by the franchisee 
B) explains the business,and sparks the interest of the reader in how the funds will be used 
C) enumerates all expenses necessary before the first customer enters the door 
D) focuses on the franchising agreement between franchisor and franchisee so the reader understands all contracts,licenses and other legal requirements of the business. 
A) details how the business intends to generate its profit through the descriptions of products or services offered by the franchisee 
B) explains the business,and sparks the interest of the reader in how the funds will be used 
C) enumerates all expenses necessary before the first customer enters the door 
D) focuses on the franchising agreement between franchisor and franchisee so the reader understands all contracts,licenses and other legal requirements of the business. B

Question 4

In 1953 Congress passed the Small Business Act to help small firms (including franchisees)obtain loans for startups and other business needs.The SBA helps franchisees obtain capital through several ways indicated below.Which one option below is not offered by the SBA to small businesses?

Accepted Answer

A) the SBA loan guarantee program 
B) Small Business Investment companies (SBICs) 
C) direct SBA (direct federal tax monies)provided to the business for startup funding 
D) the Federal Registry,which has as a part called the Franchise Registry specific for assisting in creating loan possibilities into the franchise industry 
A) the SBA loan guarantee program 
B) Small Business Investment companies (SBICs) 
C) direct SBA (direct federal tax monies)provided to the business for startup funding 
D) the Federal Registry,which has as a part called the Franchise Registry specific for assisting in creating loan possibilities into the franchise industry

Question 5

Most franchisors

Accepted Answer

A) provide up to 90 % in the financing of new franchisees 
B) will not become involved with the financing of new franchisees,although a few may provide a limited amount of help 
C) arrange for financing of franchisees through their own financial acceptance corporations 
D) provide up to 25 %,but rarely any more,of the financing of new franchisees 
A) provide up to 90 % in the financing of new franchisees 
B) will not become involved with the financing of new franchisees,although a few may provide a limited amount of help 
C) arrange for financing of franchisees through their own financial acceptance corporations 
D) provide up to 25 %,but rarely any more,of the financing of new franchisees

Question 6

The "initial franchise fee" is

Accepted Answer

A) a one-time cost or fee born by the new franchisee 
B) a recurring cost or fee,every three or five years 
C) a one-time fee that is most often waived by the franchisor 
D) none of the above 
A) a one-time cost or fee born by the new franchisee 
B) a recurring cost or fee,every three or five years 
C) a one-time fee that is most often waived by the franchisor 
D) none of the above

Question 7

Debt financing by a franchisee is typically found in two forms

Accepted Answer

A) selling part of the ownership to partners and funds granted from family and friends 
B) selling part of the ownership to partners and bank financing for working capital 
C) funds granted to franchisee from family and friends and bank financing for working capital 
D) borrowing money for working capital and for financing capital expenditures. 
A) selling part of the ownership to partners and funds granted from family and friends 
B) selling part of the ownership to partners and bank financing for working capital 
C) funds granted to franchisee from family and friends and bank financing for working capital 
D) borrowing money for working capital and for financing capital expenditures.

Question 8

The franchisee's major financial obligation is to:

Accepted Answer

A) the Internal Revenue Service 
B) one's State Department of Revenue 
C) City or County health department 
D) the franchisor 
A) the Internal Revenue Service 
B) one's State Department of Revenue 
C) City or County health department 
D) the franchisor

Question 9

The primary goal of any franchise company is to:

Accepted Answer

A) make a Profit 
B) have ever-increasing sales 
C) expand internationally 
D) lobby Congress for exceptions to Rule 436.1. 
A) make a Profit 
B) have ever-increasing sales 
C) expand internationally 
D) lobby Congress for exceptions to Rule 436.1.

Question 10

Typically,franchise fees

Accepted Answer

A) remain the same and do not vary,depending on the number of franchised units planned for in the initial agreement between franchisor and franchisee 
B) may differ within the same franchise system,depending on the number of franchised units to be opened 
C) are set very high to discourage most and only attract the most financially capable 
D) most often the greatest financial commitment required of a potential franchisee 
A) remain the same and do not vary,depending on the number of franchised units planned for in the initial agreement between franchisor and franchisee 
B) may differ within the same franchise system,depending on the number of franchised units to be opened 
C) are set very high to discourage most and only attract the most financially capable 
D) most often the greatest financial commitment required of a potential franchisee

When its time to sell or retire,most franchisors will cooperate with the franchisee intent to exit

The executive summary part of the financial package

In 1953 Congress passed the Small Business Act to help small firms (including franchisees)obtain loans for startups and other business needs.The SBA helps franchisees obtain capital through several ways indicated below.Which one option below is not offered by the SBA to small businesses?

Most franchisors

The "initial franchise fee" is

Debt financing by a franchisee is typically found in two forms

The franchisee's major financial obligation is to:

The primary goal of any franchise company is to:

Typically,franchise fees

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

Investigating Franchise Opportunities

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 16: Financing Your Franchised Business

When its time to sell or retire,most franchisors will cooperate with the franchisee intent to exit

The executive summary part of the financial package

In 1953 Congress passed the Small Business Act to help small firms (including franchisees)obtain loans for startups and other business needs.The SBA helps franchisees obtain capital through several ways indicated below.Which one option below is not offered by the SBA to small businesses?

Most franchisors

The "initial franchise fee" is

Debt financing by a franchisee is typically found in two forms

The franchisee's major financial obligation is to:

The primary goal of any franchise company is to:

Typically,franchise fees

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

Investigating Franchise Opportunities

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