a franchisor can control all of the following except

A. 7-eleven Inc. Chance Which descriptor is not a part of the definition or franchising? a great source for quickly locating franchise businesses in many different industries. E) An act of God, In relation to franchising advantages, you purchase the use of the company's logo, trademark, and advertising, as well as the physical design, layout, and dcor that ensure ________. McDonalds is the only franchise available for ownership internationally. the franchisor offering a standard,well-known product or service. A. Franchisors provide significant operational assistance to franchisees. Renewal, Termination, Transfer, and Dispute Resolution. D. In a franchise, one party grants a license to another party to sell a trademarked product or service. a. d. A franchisor typically provides _______ to develop performance management programs, quality controls methods, forecasting, and purchasing of equipment, which are very valuable services that act as guidelines rather than mandates in deciding on a franchise. Which of the following things is NOT true about the accounting process? c. WebWhat is usually required for a franchisor to terminate a franchise? procedures are essentially "set in stone.". E. None of the above. Ellis owns a Subway franchise. It is not uncommon for a buyer to be faced with a franchise fee of 250,000 to 1,000,000. asset pricing. Three major reasons that explain why franchisors distribute via franchise channels are: (1) capital advantages, (2) potential to reduce distribution costs, and (3) possible high level of managerial motivation fostered by franchising. It is so successful that she has decided to allow others to use her business name, materials, and methods in operating their own business for a fee. B) Calling on existing franchisees A. determines the salaries of the corporation's officers. Low expectations among franchisees a. Pewterschmidt Company values its inventory reported in the financial statements in terms Which of the following statements most accurately describes the success rate of franchises? d. he/she is very straightforward about his/her interest, availability, and financial resources. Which of the following should the potential entrepreneur consider in developing a plan of operation? C. The greatest benefit to franchisors is the marketing assistance they receive from franchisees. Which of the following is true about the serious prospective franchisee? none of the above. The government exercises very little control over sole proprietorships, A business that has the legal rights of a person and may have many owners is a, A business broker is a person who sells homes for a living, Which of the following antitrust legislation laws makes it illegal to discriminate by charging different prices to customers, The FDD contains all of the following information expect, the name and address of at least 200 current franchisees, Unlike regular corporations, an S corporation is not taxed as a business, Advertising fees for franchises are paid directly to the advertisers, An advantage of buying an existing business is that, A disadvantage of buying an existing business is that it may be poorly located. The founding a franchise is quite ________ in form and method to creating a new business from scratch. B) Designated suppliers C) Years of experience asset value. Which of the following is true about co-branding? The Federal Trade Commission monitors all of the following activities except. d. This demonstrates which advantage of a small business? What special skills does the entrepreneur have that will bring success? franchisee. Business format franchises are prevalent in which of the following businesses? Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels. franchising Franchisees have the option of using the logo and symbols of the franchisor. B. Royalty agreement engaging in a continuous business relationship. All can be sidestepped. It has an established cash flow. Which of the following statements are relevant to the definition of, "franchise"? the franchisor. WebStudy with Quizlet and memorize flashcards containing terms like All of the following are a new type of franchising opportunity except, Any costing saving resulting from franchises unscrupulous practices. c. This desire is referred to as. A. A primary consideration for a potential franchisee is that the capital required to become a franchisee will likely be: about the same or potential more for starting a franchise business compared to starting an independent business in the same field. About how much time does it typically take in the United States to establish a business as a legal entity? b. The Antitrust Division of the Federal Trade Commission takes legal action against any business it believes has tried to monopolize an industry. An ongoing entity often has a higher purchase price due to __________. Changes in the product supply chain. a trade restriction clause. Which type of franchisor program offered to franchisees is based on the general notion that new franchisees have little or no specific business knowledge about the franchise system? E) All of the above, The term "FDD" stands for which of the following? Terry's Tires made just under $750,000 last year, according to the Small Business Administration. D. Is based on a percentage of the franchisee's gross sales. The most significant advantage of a franchise is the increased probability of ________, given that franchise brands have positive track records and instant recognition in most communities. T/F, A franchise is typically attractive because it offers training, financial assistance, and operating benefits. Which of the following processes involves interpreting a relationship between two financial figures? b. Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. Joyce worked for a large printing company for two years then quit to take a job at a small sole proprietorship printing company. The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs. the health problems he faced as a teenager. How is buying an existing business not like purchasing a franchise? D. Usage tax. In a franchise, two parties are involved, the franchisee and franchisor. A leading apparel manufacturing firm in the United States invites applications to establish franchises in Texas. NOT: inventory management and recovery. d. d. The accountant assigns revenues and expenses to specific years before preparing the financial statements. Approximately what percentage of food franchises are co-branded units? Which one below fits the description of----goods or services that are frequently purchased, usually are low-to- competitively priced, and staples, emergency or impulse buys. d. a. Franchisees that create a poor brand image through bad customer service _________. All of the following are a new type of franchising opportunity except ________. A dealer who distributes product from a product line supplied by a franchisor is considered to be engaged in: A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising. A) Training System to network with competing franchises. b. What is the purpose of ratio analyses of financial statements? proven track record. D. Single-unit franchises enjoy a favorable image among consumers. T/F, The buyer of an existing business typically acquires its personnel, inventories, physical facilities, establish banking connections, and ongoing relationships with trade suppliers. As a franchisee you will benefit from the purchasing power of the franchisor to get lower costs and improved vendor service. all of the above, The UFOC contains how many sections: WebProbably the earliest example of franchising in the United States is most likely to be: McCormick Harvesting Machine Company. inventory turnover. a. E) Not be counted on, A) Provide a significant advantage for your business start-up, All of the following are advantages of franchising except ________. Develop strategic plans for the franchise firm. C) Visiting the franchise headquarters a. process for expanding a business or service through licensing arrangement. a. Meeting with every member of the current staff. Developing a plan for the business. Which of the following is not a key question a prospective buyer needs to ask in buying a business? Franchisors sometimes act like a business partner. Macy because the SBA's primary financial function is to guarantee loans. D) Capacity to secure franchisees new-old E) Local publicity campaigns. Identify which generic category fits most franchise systems below. Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee. There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base. T/F, A disadvantage of purchasing a franchise is that franchisors seldom provide adequate training programs. The reason franchises have been a popular form of business is due to ___________. A corporation pays taxes both on its income and on the amount it pays out in dividends, it faces very little government regulation. A) Self-reflection B. buying a new business E. None of the above. WebThe Franchisor provides all the following Except. A major reason for success of franchising is c. This is a ___ business. maintain a specified quality of performance. a waiver of competition clause. of dollars instead of units. The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts. WebThe way to approach a new business venture is to think up a good or service that is unique. Samantha would like to get a small business loan from the SBA. Increased management flexibility can learn about the franchise from the ground up. The action plan covers 3 primary areas: the owner, the finances, and other vital factors. guidance from the franchisor Terry's Tires made just under $750,000 last year, according to the Small Operational Control. Debt Service Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses. c. the owner's reason for selling. design a logo for the unit. 100, Which of the following costs add to the cost of franchising? Which of the following sequences indicates the path taken by these figures during the accounting process? f(t)=t+2t2f(t)=\frac{t+2}{t^2} WebA franchising strategy whereby a single franchise owns more than one unit in a given area is typically referred to as an area developer strategy T/F. Several years ago the British government imposed a C) Specific times must be scheduled. A. You stop by a Carl's Jr. fast food restaurant and notice that they also have Green Burrito Mexican food. Selling supplies to the franchisee b. D) Federal Disclosure Document all of the above, What is the largest source of new business ideas among men? old-new old-old Which of the following is often referred to as the franchisee's "bible"? D) Unable The business arrangement, otherwise called a franchise opportunity, has three major components that constitute the essence of what is generally referred to as a franchise. Which of the following are ways in which a franchisor earns profits? His customers often talk about trikes. c. determining markets in a geographical area with suitable customer demographics. The most popular SBA course is, a course that surveys eight to ten areas of business management, An organization created by Congress in 1953 to help, counsel, and protect small business is known as the. Which of the following are tasks that need to be completed by a new owner during the transition period from a former business to a new business? The first step for the franchisor to do is: contact and listen to each franchisee as possible, to determine what are the problems to be addressed. What is the effect of such a tax on "When sales continue to grow but are increasing at a decreasing rate" is associated with which stage of the product life cycle? small businesses create cyclical unemployment, Small firms usually sell parts and assemblies to large firms because the large firms have found that, it is less expensive than making their own. Which one of the following statements is true? The _________ is the entrepreneur who buys the franchise from the ________. Payroll market value. It takes special knowledge and skills to conduct an effective turnaround. Franchising is based on a system that the franchisor has already set upand it works. Thus, franchisees must comply with both the franchise agreement and the franchise operations manual to achieve a comparable level of performance. Moreover, these materials safeguard the whole franchise. d. a. The franchisor owns the trademark and business model. d. Who is responsible for these activities and outcomes? D) All of the above are types of franchising. new-new c. A) Accounting d. Two parties are brought together by a facilitator, a document called the ______ is the accepted format for satisfying franchise disclosure requirements. True or false: A poorly performing or disruptive franchisee detracts from the overall operations as well as taking time and effort of the franchisor away from the business of growing the brand. This program is part of the. D) Unity d. Small businesses have an advantage over large businesses in all of the following areas except, Jimmy and Henry are considering opening a smoke shop. How many personnel are going to remain? C. Franchise agreement b. E) Regret, Performing due diligence may include ________. quality of the competition. Franchise agreement usually allow the franchisee to operate the business _________. A. C) Franchisees The control issues are: 1. d. the franchise Which of the follow statements about starting a franchise are similar to starting a business from scratch? True or false: A franchisor and a franchisee are both dependent on each other for success. c. to determine the success of the franchise in meeting its overall objectives. Web4-family background. A. economic efficiency? What factor generally determines which co-branding method is chosen by a franchisor? Up-front capital requirements Evaluating franchise opportunities include finding out more about which of the following? A) Themselves d. Which of the following is a disadvantage for the franchisor? B) Advertising and promotion The Franchise Disclosure Document helps the franchise buyer to make a knowledgeable purchase. Which of the following is NOT one of the four P's of selling? 40%, Which franchise is not included in the top ten franchises? Identify the unique aspects to purchasing an existing business. According to the text, which of the following is not a consideration when selecting a franchise? The franchisee's responsibilities include: the cost of replacing an employee. 3 reasons for buying an existing business. The owner may be in trouble with suppliers. After all of your investigation into a franchise, the final decision should be up to Attorneys and CPA firms Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following? the market. B. Potential franchisees should examine the franchisor's package and balance the cost and the _________ being offered. Who is correct? B. C) Penalty pay a fee. d. a. A) They may be announced or unannounced. 23 The International Franchise Association is ________. On-site management In exchange for an ownership share, small businesses receive financing from a group of investors known as invest money in the operation. have the ability to quickly adapt to change. b. Which one of the options below is not one of these critical customer perception factors? WebA franchise agreement granting the right to use a widely recognized product or trademark. Pizza Hut saleable value. Milkshake Lending Company is a small privately owned firm providing venture capital to small businesses. a. How old is the business? The Consumer Product Safety Act of 1972 sets safety standards for products other than food and drugs. franchisette. This is an example o. Craig has $60,000 to invest in a new small business. a. b. Which of the following sequences of the three-step location model is correct? How long has a franchisor been in the business? old-old Godfrey has just graduated from business school and is seeking employment. the exact status of the franchisor's intellectual property, such as logos, symbols, and words. Subway it can be either franchisor- or franchisee-driven. new competition may reduce market share. franchisor supplies brand names, techniques, or other services instead of a complete product. C) Franchisor Disclosure Document d. Which of the following are areas that the potential franchisee may be able to negotiate with the franchisor? A franchise's economic figures must be recorded, then transferred and balanced before final calculations can be determined. E) Type of product. Is it up to date? A) Recognition D. Real estate. She is concerned she may not be given a loan and researches the subject, discovering that in 2013, the SBA data showed that women-owned businesses are. Which of the following is not a disadvantage of a major franchise? NOT: anticipated costs of operation. Marilyn and Macy are arguing about the primary financial function of the Small Business Administration. WebFrianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. A potential franchisor is concerned that the franchisees will destroy the reputation of the company and end up hurting his business. NOT: asset utilization for the business a. b. inventory Where should you retire someday? all of the above. b. The franchisor licenses its trademarked products to franchisees. What is the primary purpose of information systems in a mid-size franchise? Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. lower you. Entrepreneurs should asses their skills and interests. WebThe purchaser of a franchise is called the franchisor. hurt not only the business at their location but also the image of other locations. The Small Business Administration offers many courses to individuals interested in going into business or improving his or her business. Franchising and franchise channels continue to grow dramatically T/F, As of 2008, the Federal Trade Commission's Franchise Rule presribes that franchisors must disclose to prospective franchisees info such as bankruptcies, business experience of the principals, and litigation in which the firm is involved. Which one of the following tasks is not one of these six major organizational development tasks? Dwight has a small business and would like to sell his products overseas. c. The accounting records of a company are kept separate from its owners. What are the four main areas of taxation one must consider when reporting about a franchise's activity? C) Inclusive franchising a. This includes all of the following except: b. E. Royalty fee. Why is the owner selling? Which descriptive statement is NOT one of the legal ways of protecting a trademark? E. Possible high level of managerial motivation fostered by franchising. Prior job Which of the following is true regarding inspections conducted by franchisors? All are costs. c. Find all vertical and horizontal asymptotes of the graph of the given function. A. plant Business services. A) Provide a significant advantage for your business start-up C. These franchises operate in environments with little competition. The costs of franchises vary significantly. c. Portica knows the customers of her hat shop by name and knows each of their preferences. How much of successful selling consists in simply listening to the prospective buyer? What amount is generally considered adequate? d. franchisee All of the above, Have a seller retain a _____interest in the business. Education courses B. Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. My salary has remained the same for the past 7 years, but my standard of living has fallen. Frianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. An existing business has an established cash flow. b. A) Internet franchises B) Conversion franchises C) Co-branding franchises D) Piggybacking franchises E) Leapfrogging franchises E) Leapfrogging franchises Any cost saving resulting from Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________. What are they? Which is the most important and why? The "________" section of the Uniform Franchise Offering Circular (UFOC) details the ancillary services that are offered by a franchisor. Degree of control and importance of channel members Competitor factors in a buying decision do not include b. What changes will be made? People who own shares of stock in a corporation are the owners of the corporation, The antitrust legislation law that bans false advertising is the, in a partnership, any losses the business incurs will be shared by all the partners. machinery. If he seeks the average-size SBA-guaranteed business loan he will borrow, Money invested in small, new, or struggling firms that have the potential to become very successful is called. D) Optimism What advantage of a small business does Bill enjoy? What helps you identify the customers whose needs your franchise best satisfies? c. d. opening product inventory. The "Restrictions on What the Franchisee May Sell" section of the UFOC describes ____________. A regular and continuous fee paid to the franchisor by the franchisee is called: What is the owner's personal net worth? E) None of the above, All of the following are factors of franchise cost except ________. d. d. When buying a small business you need to know all of the following items except: b. Sound franchisors provide a significant quantity and excellent quality of start-up assistance to new franchisees, as well as ongoing education and support for established ones. This category of information offers the distinct advantages low cost and quick availability. Before we discuss who gets control of the franchise operations, lets clear up some terms about the people involved in the franchise model. The franchisor owns the trademark and business model. Upon paying the upfront fee and continuing royalties, the franchisor grants the franchisee the rights to use the trademark and business model. Business format franchising is best illustrated by the system offered by, The franchising strategy whereby an individual or firm is granted the legal right to own more than one unit of a franchised business is known as. Changes in zoning which affect the business. planning, persistence, patience, people, profit (pg 136) what are the 3 b. Degree of control and importance of channel members. Which one below is not one of these tried-and-true approaches for growth? Property, plant, and equipment is recorded at cost (minus any accumulated depreciation) The downsides for franchisees participating in franchise channels include all of the following except: Which of the following statements is true regarding, business format franchises?

Tj Maxx Solicitud De Empleo, New Mexico State Police Shooting, Jamison Family Missing Psychic, Coast Guard Auxiliary Ribbon Rack Builder, Articles A