Deck 7: Co-Branding

Question 1

Which of the following is true about co-branding?

A)it is primarily franchisor-driven.
B)it is primarily customer-driven.
C)it is primarily franchisee-driven.
D)it can be either franchisor- or franchisee-driven.

Answer 1

D
Co-branding is now considered a standard business practice that a franchisor should disclose in its Uniform Franchise Offering Circular (UFOC),but co-branding can also be a franchisee-driven initiative

Question 2

Why might co-branding be beneficial for a mature market?

A)mature markets provide little opportunity for sales and profit growth through traditional outlets.
B)co-branding represents a new approach that can revitalize mature markets.
C)a new and improved,co-branded unit has the potential to bring in extra cash flow that can result in greater overall new profits for the franchise system.
D)all of these are reasons it could be beneficial.

Answer 2

D
Many franchise sectors are mature markets that provide little opportunity for sales and profit growth through traditional outlets.Co-branding represents a new approach that can revitalize mature units.These new and improved versions of brand offerings have the potential to bring in extra cash flow that can result in greater overall new profits for the franchise system.

Question 3

What crucial element is necessary for the success of co-branding partners?

A)sufficient time to integrate the brands
B)natural synergy between the brands
C)distinctive differences between the brands
D)a strong personal relationship between the franchisors

Answer 3

B
Co-branding partners know that for success the brands must have some sort of natural synergy-be it with customers,product or service offerings,and/or day parts

Question 4

What factor generally determines which co-branding method is chosen by a franchisor?

A)expertise
B)personal preference
C)profit potential
D)none of these is a determining factor.

Question 5

Approximately what percentage of food franchises are co-branded units?

A)5 %
B)20%
C)50%
D)75%