Question 1

An arrangement where a franchisee has the right to sell franchises to others within a particular territory is called a franchise.

Accepted Answer

The answer of An arrangement where a franchisee has the...

Question 2

Outline a typical process of buying a franchise from the first contact with the franchisor to the final signing of the contract. Note how the process favours the franchisor.

Accepted Answer

The answer of Outline a typical process of buying a...

Question 3

Franchisors such as automobile manufacturers can dictate the prices charged by their franchisees.

Accepted Answer

A) True 
 B)False

Question 4

Buying an existing franchise is legally simpler than buying a new one.

Accepted Answer

A) True 
 B)False

Question 5

Most Multi-level Marketers make well-above-average incomes.

Accepted Answer

A) True 
 B)False

Question 6

Dealership franchising tends to give the franchisee more freedom than business format franchising.

Accepted Answer

A) True 
 B)False

Question 7

On average, buying a franchise:

Accepted Answer

A)  is the lowest risk start-up method. 
B)  has the same risk as starting a brand new business. 
C)  has the same risk as buying an existing independent firm. 
D)  is risk-free.

Question 8

In three or four sentences discuss your personality and skills explaining why you would (or would not) make a good franchisee.

Accepted Answer

The answer of In three or four sentences discuss your...

Question 9

Explain the major provisions of existing or pending franchise legislation. Explain the growing trend for disclosure requirements. .

Accepted Answer

The answer of Explain the major provisions of existing or...

Exam 7: The Purchase Alternative: How Do I Buy or Buy Into an Existing Business

An arrangement where a franchisee has the right to sell franchises to others within a particular territory is called a franchise.

Outline a typical process of buying a franchise from the first contact with the franchisor to the final signing of the contract. Note how the process favours the franchisor.

Franchisors such as automobile manufacturers can dictate the prices charged by their franchisees.

Buying an existing franchise is legally simpler than buying a new one.

Most Multi-level Marketers make well-above-average incomes.

Dealership franchising tends to give the franchisee more freedom than business format franchising.

On average, buying a franchise:

In three or four sentences discuss your personality and skills explaining why you would (or would not) make a good franchisee.

Explain the major provisions of existing or pending franchise legislation. Explain the growing trend for disclosure requirements. .