Exam 8: Franchising Structures and Strategies

In a(n)________ franchise system,dealers meet minimum criteria established by the manufacturer and receive the right to sell a product and use the manufacturer's trade name for promotional purposes.

Why does goal incongruity most likely exist between franchisors and franchisees?

According to the text,franchising in the U.S.was primarily developed by which company?

Anthony recently signed a franchise contract with Tasty-Freeze,an ice cream chain.As Anthony readies the store,he frequently contacts Tasty-Freeze representatives with questions about recipes,tools,and advertising.Which of the following most likely motivates the Tasty-Freeze franchise to assist Anthony as he develops his business?

Franchise managers are most likely encouraged to work hard because they are ________.

The Tubby Tacos franchise holds the lease for all Tubby Tacos restaurants.Tubby Tacos franchisees make monthly lease payments to the national franchisor.What is the LEAST likely reason that Tubby Tacos ensures that it is the landlord of all franchisees?

Why is site selection highly important to most franchised retail operations?

Which term refers to building too many stores close to each other and undermining their ability to earn profits?

Coffee Cups,a national coffee shop franchise,uses a plural form strategy.The franchisor wants to create functional rivalry between the two forms by monitoring company outlets closely.Which of the following would most likely enable Coffee Cups to achieve this goal?

Free riding among franchisees is most likely prevented by ________.

Brad has decided to purchase a fast-food franchise,Taste Buds.Which of the following will Brad,the franchisee,LEAST likely receive from the Taste Buds franchisor?

Annual profits serve as the best tool to assess franchisee performance because profits can be readily observed and verified,unlike sales,which are difficult to measure.

Differentiate between business format franchising and authorized franchise systems.

How does franchising most likely benefit a franchisor?

Francesca purchased a frozen yogurt franchise,Yo-To-Go,and she has been successfully operating the new store for three months.Which of the following will Francesca most likely receive from the franchisor on a regular basis?

What is a plural form system? What are the benefits of such a system?

Large franchisors have company lawyers to draft documents,architects to draw plans,and technicians to install and test equipment for franchisees.Franchisees benefit from these ________ that lower costs and provide better franchising results.

By opting for franchising instead of setting up company-owned branches,a firm most likely overcomes the problem of ________.

Franchising is a fast growing form of retailing especially in the retail sectors of Europe and the U.S.

The practice of licensing an entire way of doing business under a brand name in exchange for ongoing fees from franchisees is known as ________.