Question 1

Why do most franchisors offer the same contract to all franchisees?

Accepted Answer

A)  ensure cooperation 
B)  minimize start-up costs 
C)  encourage longer contracts 
D)  provide negotiation flexibility 
E)  avoid appearing discriminatory 
A)  ensure cooperation 
B)  minimize start-up costs 
C)  encourage longer contracts 
D)  provide negotiation flexibility 
E)  avoid appearing discriminatory

Question 2

What are some reasons that entrepreneurs choose franchising over starting a new business? How does a franchisor benefit from a franchising arrangement?

Accepted Answer

Franchising a business format offers a w

Question 3

Francesca purchased a frozen yogurt franchise,Yo-To-Go,and she has been successfully operating the new store for three months.Each month,a Yo-To-Go franchise consultant visits Francesca's store.What is the LEAST likely purpose of the regular visits?

Accepted Answer

A)  evaluating product quality 
B)  monitoring the store's performance 
C)  assessing the quality of customer service 
D)  handling employee management issues 
E)  reporting the store's status to the franchisor 
A)  evaluating product quality 
B)  monitoring the store's performance 
C)  assessing the quality of customer service 
D)  handling employee management issues 
E)  reporting the store's status to the franchisor

Question 4

Kyle owns a Cars-To-Go franchise.Kyle's franchising contract stipulates that he must purchase the cars he rents from the national Cars-To-Go franchisor.What is the most likely reason that the franchisor makes this requirement?

Accepted Answer

A)  give Kyle the right of first refusal 
B)  monitor rental agency's safety rates 
C)  ensure the quality of rental cars 
D)  lower Kyle's fixed franchise costs 
E)  create contract consistency 
A)  give Kyle the right of first refusal 
B)  monitor rental agency's safety rates 
C)  ensure the quality of rental cars 
D)  lower Kyle's fixed franchise costs 
E)  create contract consistency

Question 5

According to the text,a franchise system that is ________ old has the greatest chance of success.

Accepted Answer

A)  6 months 
B)  1 year 
C)  2 years 
D)  3 years 
E)  4 years 
A)  6 months 
B)  1 year 
C)  2 years 
D)  3 years 
E)  4 years

Question 6

Shoes-4-Less simultaneously maintains both company stores and franchised outlets.Shoes-4-Less is most likely following a ________ strategy.

Accepted Answer

A)  niche 
B)  global 
C)  multiple 
D)  plural form 
E)  business format 
A)  niche 
B)  global 
C)  multiple 
D)  plural form 
E)  business format

Question 7

McDonald's has most likely earned praise for ________.

Accepted Answer

A)  adapting menu items to meet cultural preferences and nutritional needs 
B)  minimizing corporate intervention in local restaurant management 
C)  developing personal relationships with local restaurant suppliers 
D)  encouraging franchisees to open multiple locations 
E)  offering franchising opportunities to minorities 
A)  adapting menu items to meet cultural preferences and nutritional needs 
B)  minimizing corporate intervention in local restaurant management 
C)  developing personal relationships with local restaurant suppliers 
D)  encouraging franchisees to open multiple locations 
E)  offering franchising opportunities to minorities

Question 8

Which of the following is most likely a true statement about the McDonald's franchise format?

Accepted Answer

A)  McDonald's provides franchisees with general guidelines about job responsibilities but allows franchise managers to determine serving specifications. 
B)  Most McDonald's franchisees are responsible for finding a restaurant site and constructing the new building using their personal capital. 
C)  McDonald's provides franchisees and managers with extensive training about running a McDonald's franchise. 
D)  McDonald's franchisees receive occasional assistance from headquarters when sales are slow. 
E)  McDonald's franchisees are strongly encouraged to make menu changes to suit local tastes. 
A)  McDonald's provides franchisees with general guidelines about job responsibilities but allows franchise managers to determine serving specifications. 
B)  Most McDonald's franchisees are responsible for finding a restaurant site and constructing the new building using their personal capital. 
C)  McDonald's provides franchisees and managers with extensive training about running a McDonald's franchise. 
D)  McDonald's franchisees receive occasional assistance from headquarters when sales are slow. 
E)  McDonald's franchisees are strongly encouraged to make menu changes to suit local tastes.

Question 9

Which of the following refers to a franchisee that owns many outlets and has an organizational structure that mimics the franchisor's structure?

Accepted Answer

A)  licensed 
B)  multi-unit 
C)  single-unit 
D)  plural form 
E)  business format 
A)  licensed 
B)  multi-unit 
C)  single-unit 
D)  plural form 
E)  business format

Question 10

Franchisors benefit from a franchisee's entrepreneurial spirit and knowledge of the local market.

Accepted Answer

A) True 
 B)False

Why do most franchisors offer the same contract to all franchisees?

What are some reasons that entrepreneurs choose franchising over starting a new business? How does a franchisor benefit from a franchising arrangement?

Francesca purchased a frozen yogurt franchise,Yo-To-Go,and she has been successfully operating the new store for three months.Each month,a Yo-To-Go franchise consultant visits Francesca's store.What is the LEAST likely purpose of the regular visits?

Kyle owns a Cars-To-Go franchise.Kyle's franchising contract stipulates that he must purchase the cars he rents from the national Cars-To-Go franchisor.What is the most likely reason that the franchisor makes this requirement?

According to the text,a franchise system that is ________ old has the greatest chance of success.

Shoes-4-Less simultaneously maintains both company stores and franchised outlets.Shoes-4-Less is most likely following a ________ strategy.

McDonald's has most likely earned praise for ________.

Which of the following is most likely a true statement about the McDonald's franchise format?

Which of the following refers to a franchisee that owns many outlets and has an organizational structure that mimics the franchisor's structure?

Franchisors benefit from a franchisee's entrepreneurial spirit and knowledge of the local market.

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Wholesaling Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters

Exam 8: Franchising Structures and Strategies

Why do most franchisors offer the same contract to all franchisees?

What are some reasons that entrepreneurs choose franchising over starting a new business? How does a franchisor benefit from a franchising arrangement?

Francesca purchased a frozen yogurt franchise,Yo-To-Go,and she has been successfully operating the new store for three months.Each month,a Yo-To-Go franchise consultant visits Francesca's store.What is the LEAST likely purpose of the regular visits?

Kyle owns a Cars-To-Go franchise.Kyle's franchising contract stipulates that he must purchase the cars he rents from the national Cars-To-Go franchisor.What is the most likely reason that the franchisor makes this requirement?

According to the text,a franchise system that is ________ old has the greatest chance of success.

Shoes-4-Less simultaneously maintains both company stores and franchised outlets.Shoes-4-Less is most likely following a ________ strategy.

McDonald's has most likely earned praise for ________.

Which of the following is most likely a true statement about the McDonald's franchise format?

Which of the following refers to a franchisee that owns many outlets and has an organizational structure that mimics the franchisor's structure?

Franchisors benefit from a franchisee's entrepreneurial spirit and knowledge of the local market.

Understanding Channel Strategies

End-User Analysis: Segmenting and Targeting

Channel Analysis: Auditing Marketing Channels

Make Versus Buy Channel Analysis

Designing Channel Structures and Strategies

Retailing Structures and Strategies

Wholesaling Structures and Strategies

Emerging Channel Structures and Strategies

Managing Channel Power

Managing Channel Conflict

Managing Channel Relationships

Managing Channel Policies and Legalities

Managing Channel Logistics

Filters