Question 1

This type of franchising may be a means of achieving certain economies of scale and perhaps a lower average franchise cost.

Accepted Answer

A) Single-unit franchise 
B) Area franchise 
C) Master franchise 
D) Corporate franchise 
A) Single-unit franchise 
B) Area franchise 
C) Master franchise 
D) Corporate franchise

Question 2

Which of the following is not an advantage to buying a franchise?

Accepted Answer

A) A proven system 
B) Reduced risk 
C) Loss of independence 
D) Purchasing power 
A) A proven system 
B) Reduced risk 
C) Loss of independence 
D) Purchasing power

Question 3

Virtually all franchise arrangements contain all of the following elements,except:

Accepted Answer

A) A continuing relationship between two parties 
B) A legal contract that describes the responsibilities and obligations of each party 
C) A succession plan 
D) Tangible and intangible assets (such as services,trademarks,and expertise)provided by the franchisor for a fee 
A) A continuing relationship between two parties 
B) A legal contract that describes the responsibilities and obligations of each party 
C) A succession plan 
D) Tangible and intangible assets (such as services,trademarks,and expertise)provided by the franchisor for a fee

Question 4

Of the top ten franchises in Canada in 2012,only very few were actually fast-food restaurants.

Accepted Answer

A) True 
 B)False

Question 5

For a fast-food franchise,typical royalties range from:

Accepted Answer

A) 1-2 percent 
B) 3-8 percent 
C) 8-12 percent 
D) 12-15 percent 
A) 1-2 percent 
B) 3-8 percent 
C) 8-12 percent 
D) 12-15 percent

Question 6

This format involves a franchisor's granting you the right to establish more than one outlet within a specified territory.

Accepted Answer

A) Single-unit franchise 
B) Area franchise 
C) Master franchise 
D) Corporate franchise 
A) Single-unit franchise 
B) Area franchise 
C) Master franchise 
D) Corporate franchise

Question 7

All of the following are examples of a product distribution arrangement,except:

Accepted Answer

A) Coke 
B) Pepsi 
C) BMW 
D) McDonalds 
A) Coke 
B) Pepsi 
C) BMW 
D) McDonalds

Question 8

Most franchisees generally want to have the franchisor agree not to operate or grant a franchise to operate another franchised outlet too close to their operation.

Accepted Answer

A) True 
 B)False

Question 9

Franchisees have minimal obligations and are never subject to inspection or supervision.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are advantages of franchising your business,except:

Accepted Answer

A) Since franchisees use their own capital you have no investment at the unit level so you can leverage the assets of these franchisees. 
B) Because you have a smaller investment in the overall business,your ROI should be significantly higher. 
C) Establishing franchises can enable you to grow much faster without increasing your investment or adding more employees. 
D) Franchisees are less motivated since they think everything will be controlled by the owner. 
A) Since franchisees use their own capital you have no investment at the unit level so you can leverage the assets of these franchisees. 
B) Because you have a smaller investment in the overall business,your ROI should be significantly higher. 
C) Establishing franchises can enable you to grow much faster without increasing your investment or adding more employees. 
D) Franchisees are less motivated since they think everything will be controlled by the owner.

Question 11

In addition to the initial fee you must pay to buy a franchise,are there any other ongoing fees?

Accepted Answer

Besides an initial franchise f

Question 12

Only Alberta,Manitoba,Ontario,Prince Edward Island,and New Brunswick have legislation specifically related to franchise disclosure.

Accepted Answer

A) True 
 B)False

Question 13

After you have identified one or two possibility choices for a franchise opportunity,the next step is to:

Accepted Answer

A) Meet with the corporate headquarters 
B) Request a promotional kit from each of the franchisors 
C) Go to the bank to secure financing 
D) Make an appointment with a lawyer 
A) Meet with the corporate headquarters 
B) Request a promotional kit from each of the franchisors 
C) Go to the bank to secure financing 
D) Make an appointment with a lawyer

Question 14

All of the following are trends in the future of franchising,except:

Accepted Answer

A) Pet care 
B) Home improvements 
C) Fitness 
D) Horticulture 
A) Pet care 
B) Home improvements 
C) Fitness 
D) Horticulture

This type of franchising may be a means of achieving certain economies of scale and perhaps a lower average franchise cost.

Which of the following is not an advantage to buying a franchise?

Virtually all franchise arrangements contain all of the following elements,except:

Of the top ten franchises in Canada in 2012,only very few were actually fast-food restaurants.

For a fast-food franchise,typical royalties range from:

This format involves a franchisor's granting you the right to establish more than one outlet within a specified territory.

All of the following are examples of a product distribution arrangement,except:

Most franchisees generally want to have the franchisor agree not to operate or grant a franchise to operate another franchised outlet too close to their operation.

Franchisees have minimal obligations and are never subject to inspection or supervision.

All of the following are advantages of franchising your business,except:

In addition to the initial fee you must pay to buy a franchise,are there any other ongoing fees?

Only Alberta,Manitoba,Ontario,Prince Edward Island,and New Brunswick have legislation specifically related to franchise disclosure.

After you have identified one or two possibility choices for a franchise opportunity,the next step is to:

All of the following are trends in the future of franchising,except:

Buying a Franchise

Marketing

Financing Your Business and Accounting Practices

Legal Considerations

Business Plans

Cost and Profitability Assessment

Market Feasibility Study

Exploring Business Ideas and Opportunities

Assessing Your Potential for an Entrepreneurial Career

Buying a Business

Filters

Exam 11: Sales

This type of franchising may be a means of achieving certain economies of scale and perhaps a lower average franchise cost.

Which of the following is not an advantage to buying a franchise?

Virtually all franchise arrangements contain all of the following elements,except:

Of the top ten franchises in Canada in 2012,only very few were actually fast-food restaurants.

For a fast-food franchise,typical royalties range from:

This format involves a franchisor's granting you the right to establish more than one outlet within a specified territory.

All of the following are examples of a product distribution arrangement,except:

Most franchisees generally want to have the franchisor agree not to operate or grant a franchise to operate another franchised outlet too close to their operation.

Franchisees have minimal obligations and are never subject to inspection or supervision.

All of the following are advantages of franchising your business,except:

In addition to the initial fee you must pay to buy a franchise,are there any other ongoing fees?

Only Alberta,Manitoba,Ontario,Prince Edward Island,and New Brunswick have legislation specifically related to franchise disclosure.

After you have identified one or two possibility choices for a franchise opportunity,the next step is to:

All of the following are trends in the future of franchising,except:

Buying a Franchise

Marketing

Financing Your Business and Accounting Practices

Legal Considerations

Business Plans

Cost and Profitability Assessment

Market Feasibility Study

Exploring Business Ideas and Opportunities

Assessing Your Potential for an Entrepreneurial Career

Buying a Business

Filters