a franchisor can control all of the following except

It is uncommon for a franchisor to handle the national and regional media purchasing for a franchisee. all of these are reasons it could be beneficial. d. Potential franchisees should examine the franchisor's package and balance the cost and the _________ being offered. b. Repeat the test using the critical value approach. opening product inventory. Developing a plan for the business. C) Ensures ongoing support Which of the following issues should detailed in the "Business Experience" section of the Uniform Franchise Offering Circular (UFOC)? success will cause another outlet to be opened nearby. Ellis owns a Subway franchise. A) Recognition d. Which one of the following is not a major question at the onset? Franchises include the business name and a general plan for business operations. A. Juan is most likely a franchisee in the ___ industry. A) Success A) Required awareness of some of the unfilled promises from franchisors, Which of the following costs do not add to the cost of franchising? McDonalds is the only franchise available for ownership internationally. B) Business-format franchising symbols and logos. d. all of the above. In the franchise industry, the person or business providing the rights to an individual for the local distribution and/or sales of a specified product or service is called the: Probably the earliest example of franchising in the United States is most likely to be: A major reason for success of franchising is that the franchisor can use all of the following from the franchisee EXCEPT for the franchisee's: Which of the following industries provides the earliest and lasting example of franchising in the U.S. economy? amount to the government independent of his or her E) Very few franchisors do inspections. Bill has his own tax preparation and accounting business. E. None of the above. In business format franchises the franchisor provides the complete system for operating the business. Chance, What is an often overlooked asset when acquiring a new business? 5-age. asset value. Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged. According to the text, which of the following is not a consideration when selecting a franchise? price competition may affect profits. Identify the unique aspects to purchasing an existing business. a. a. The individual who buys the franchise is the He states in the plan, "This business will serve over 400 customers by the end of the year and employ ten full-time employees." a. a. The inventory should be examined for which of the following? A) They may be announced or unannounced. One of the advantages of buying a franchise is that the purchaser has access to a proven business system. He has misjudged, In order to operate a successful small business, the entrepreneur should be most concerned with, Jeff Katz, the founder of Orbitz,Inc., when speaking about new businesses recently said, "A flat checkbook is the mother of invention." buying a new business Traits that entrepreneurs tend to have include all but which one of the following? a. Prior job The ability to leave the venture if an entrepreneur does not enjoy the business is severely limited. d. franchises have a very high success rate compared to other small businesses. Competitor factors in a buying decision do not include a. There is one thing every franchise system knows. Which of the following statement most accurately describes a franchise channel? b. d. Franchisees that create a poor brand image through bad customer service _________. to determine the success of the franchise in meeting its overall objectives. c. a. c. a. a financial investment. b. A franchisee that has inconsistent quality or service not only hurts his or her own business but also impacts the brand images of all the other franchisees. Which of the following organizations would most likely give her the help she needs? There are approximately ___ businesses in the United States. Salability b. Will the business's mission and vision change? D) Initial inventory Payroll Entitles the franchisee the right to open a business in a given area. equipment. NOT: customers There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base. A) Self-reflection a. d. Some franchisors provide different levels of support depending on how much the franchisee is willing to pay. Identify an accurate statement about buying an existing business. b. A. A lawyer Milkshake Lending Company is a small privately owned firm providing venture capital to small businesses. d. The accountant assigns revenues and expenses to specific years before preparing the financial statements. WebWhich of the following is an advantage to purchasing a franchise?. E) None of the above, Franchisors are focused on creating wealth for ________. one time franchise fee and monthly royalties based on sales. the franchisor 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. Payroll tax. pay a fee. b. In what way is a franchise's control over the business greatly reduced? Which characteristic is not considered a positive of franchising? This is a ___ business. A) Franchisor agreement Policies and procedures for running the business. Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________. identify a franchisor that is the best potential match for him or her in terms of support, expansion plans, and so on. The category most franchise systems are in is the one that has focus on product or service qualities or characteristics with prices being a second-level or a lower order concern to the purchaser. How long has a franchisor been in the business? There are several ways to protect a trademark, as indicated below. The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds what? Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution. Which of the following should the potential entrepreneur consider in developing a plan of operation? A) Type of franchise D. System to network with competing franchises. c. on their support for important areas such as accounting, marketing, and training. Which is not a key question to ask when buying a business? d. Selling supplies to the franchisee Degree of control and importance of channel members a. B. Jeremy has written a business plan for the business he would like to open. b. WebThe Franchisor bills and received payment from the customer directly, and then after deducting its royalties and other fees and payments, sends the Franchisee the balance; If Business related reasons for selling may include all but which of the following? These are questions directly associated with which phase of marketing strategy for a franchise system? Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses. D) Both A and B Which of the following is an intangible asset? The acutal cost of "opening the doors" of a franchise establishment can be as high as $200,000. a. Which of the following statements most accurately describes the success rate of franchises? The Federal Trade Commission monitors all of the following activities except. Franchisors often determine a franchisee's likelihood of success by looking at two things. planning, persistence, patience, people, profit (pg 136) what are the 3 a. C. The franchisor provides little beyond a license to use its trademarked products. All of the following are true about small business except. the competition in the area. Which one of the following is not one of the required factors for successful leadership? The way to approach a new business venture is to think up a good or service that is unique. Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. b. WebThe Franchisor provides all the following Except. Supplies f(t)=t2t+2. 40%, Which franchise is not included in the top ten franchises? C. While the number of franchises has grown, the number of kinds of franchises has remained constant When buying a business, you should do all of the following except, A corporation's senior officers decide how much should be paid out in dividends. True or false: An entrepreneur should explore what aspects of a franchisor-franchisee contract are negotiable by making a list of wants and desires. The "Trademarks" section of the UFOC details ___________. John, an entrepreneur, approaches the firm with a proposal. A franchise system can be used for handling Which one of the following is NOT an advantage of franchising for the franchisee? This is an example o. Craig has $60,000 to invest in a new small business. E) Not be counted on, A) Provide a significant advantage for your business start-up, All of the following are advantages of franchising except ________. D) Removes the creativity and freedom This is the most common form of franchise channel structure. How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels? Approximately what percentage of food franchises are co-branded units? What is the purpose of ratio analyses of financial statements? E. Franchisees provide significant operational assistance to franchisors. E. All of the above statements are true. she will work very hard putting in long hours about six days a week, The SBA assists small-business owners entering the world markets by doing all of the following except, offering long term loans to US business owners. pay a fee. It is most likely that, it may take several years for this business to begin to show a profit, Barrack opens a bagel shop and at the end of each day has five dozen bagels left over that he cannot sell the next day due to health code restrictions. A ________ specializes in selling buinesses. Who is responsible for these activities and outcomes? Why do most franchisees choose to go into business with a franchised company? b. Which is the most important and why? A leading apparel manufacturing firm in the United States invites applications to establish franchises in Texas. C. Multi-unit franchises require the franchisor to provide greater operational assistance to their franchisees than do they do for single-unit franchises. B. asset pricing. C) Purchasing power What pricing strategy should the firm use? d. D. Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. Which one of the following tasks is not one of these six major organizational development tasks? if employees are leaving, will enough remain to operate the business. a. b. Which of the following is not an advantage of a franchise? Which of the following is a true statement pertaining to single-unit franchises? new-old, When one discusses upside gain and downside loss, one is talking about About how much time does it typically take in the United States to establish a business as a legal entity? Independence and a desire to determine one's own destiny are some of the entrepreneurs' personal factors in small-business success, others include: Jennifer would like to open her own business. It is structured between single-unit and multi-unit franchises. inventory turnover. b. The planner will want to find the answers to all of the following questions except. Debt Service Name the three steps used to allocate producing department activity cost pools using the ABC approach. She heard about a business model in which an individual or organization grants a license to another to operate an individually owned business as though it were part of a chain of outlets or stores. The Small Business Administration offers many courses to individuals interested in going into business or improving his or her business. Which of the following is something that would not be included in the plan? E) All of the above, The formula provided by the franchise does which of the following? A Starbucks franchise located inside a Target store is called ___________ franchising. The product quality is within the perception of the customer and is greatly influenced by the franchise system's server. franchatter. d. franchisor supplies brand names, techniques, or other services instead of a complete product. goods. the health problems he faced as a teenager. NOT: prospective franchises being recruited into the system. A) Established multiple franchises Pay for all physical assets (e.g., equipment and building), needed to operate the franchise. A. machinery. In franchising, the _____ is the firm that originates the idea for a business and develops the operational methods. A) Internet franchises B) Conversion franchises C) Co-branding franchises D) Piggybacking franchises E) Leapfrogging franchises E) Leapfrogging franchises Any cost saving resulting from Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. Find all vertical and horizontal asymptotes of the graph of the given function. Only franchisees operating multi-unit franchisees can own more than a single franchise.. franchisette. B) They are always surprise inspections. 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. A. market value. An entity or invidiual granted the right to conduct business according to specified methods and terms of another party is known as a, A legal agreement between two parties in a franchise arrangement is referred to as a, benefits of becoming a franchisee include all of the following terms except, Franchise costs include all of the following expenses except. E) None of the above is a type of franchising. a. The _________ has the responsibility for the business location, of establishing the business, and of building the storefront. c. Where should you retire someday? B. A. b. management and training. c. whichever method the franchisor deems appropriate for a their particular business. Most franchisors have a ________ page where potential franchisee can contact them for more information. The number of franchised business establishments has continued to growth in the U.S. Today there are approximately ( ) franchise businesses in operation. Trade associations for the industry. C. Lodging. the financial picture of the business. The Consumer Product Safety Act of 1972 sets safety standards for products other than food and drugs. Which of the following is a question which can be sidestepped when buying a business? B. Royalty agreement All of these are ways a franchisor makes money; discloses any predecessor to the current business. 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 Many fees are must be paid regardless of ________. If you are looking to start a business that is creative and is not controlled by others, then franchising is your best option. All can be sidestepped. "The Franchisor, Its Predecessors, and Affiliates" section of the UFOC _________. A) Training True. What is the name of the business agreement Henry would sign? D) Many legal disputes d. The local Small Business Administration Office A CPA According to the text, the most important reason why franchisors adopt franchise channels is: Franchising offers all the following benefits for franchisers except. b. D. Franchising is an American business model that does not work well outside the U.S. How much of successful selling consists in simply listening to the prospective buyer? b. What are they? This demonstrates which advantage of a small business? can learn about the franchise from the ground up. What is the effect on economic Externally dedicated to the market, yet internally focused on production, seeking to produce high-volume or high-value product/service while carefully examining any new opportunities for costs/benefits in relation to known strengths of the firm, is a description of which one of the market-focused business strategies identified below. c. C. Franchise fee. new-new B. A(n) _______ _______ is a basic contract generated by a franchisor for all franchisees. c. Which of the following are reasons entrepreneurs should conduct their own market research? D. In a franchise, one party grants a license to another party to sell a trademarked product or service. C) Franchisees d. c. Which of the following is not one of those statements? old-new B) Eases the issues of start-up development E) Type of product. A. How many years will she have to repay the loan? As a class assignment, business students were told to prepare a business plan for a business they would like to own. 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. WebProbably the earliest example of franchising in the United States is most likely to be: McCormick Harvesting Machine Company. The most important section of the business plan is: In urban areas, approximately how much of a store's business is done by people who live or work within a five-minute drive or walk of the location? a. design a logo for the unit. What are the four main areas of taxation one must consider when reporting about a franchise's activity? D. Limited independence of the franchisee. Leticia has always wanted to own her own restaurant but has read that restaurants have a very high failure rate. old-old To better understand the demand for a product or service. d. Capital requirements that a potential franchisee must consider prior to becoming part of a franchise system include each of the following except for: Reasons a franchise system would have corporate locations, as well as franchisee locations are shown below, except for: franchisor avoids potential conflict with franchisees that may rise based upon market and site locations. 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. Negotiating a deal to acquire exactly what is required from the operation. the market. Which of the following statements best describes franchise channel structure? The initial franchisee vetting usually includes _________. Attorneys and CPA firms b. Four factors are important in determining the size and shape of a primary service area (PSA). Identify which generic category fits most franchise systems below. C) Inclusive franchising Business students at universities can work together to provide management counseling to small businesses in their community. Which philosophy of expansion is, as a rule, the best method for franchisors? Franchisees may pay a fee that is separate from the royalty fee, often called a ________, to contribute to a shared advertising fund. d. 23 C) In shopping malls The owner may be in trouble with suppliers. Strong franchisors have all of the following except ________. payroll What is the primary disadvantage of owning a franchise experienced by a franchisee? High-tech ___ entrepreneurship is exploding. Entrepreneurs should asses their skills and interests. NOT: to generate data which can be used to accumulate working knowledge Test the following hypotheses at the .05.05.05 level of significance. B) Failure All of the above. Importance of channel members and nature of product c. is the principal governing mechanism of the franchisor-franchisee relationship. D. Reduce uncertainty A partnership agreement identifies the type and value of the investment contributed by each partner. Which of the following statements are relevant to the definition of, "franchise"? equity? Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors? The _____approach indicates the importance of people's awareness of their daily lives for developing new business ideas. An existing business has the benefit of having an established set of processes. invest money in the operation. d. insurance Which of the following antitrust legislation laws makes it illegal for competitors to get together and set prices on the products or services they sell? My salary has remained the same for the past 7 years, but my standard of living has fallen. Jack owns a franchise. Leticia would like to start a business and has investigated starting her own or buying a franchise. The party granting the license is the. income or wealth. It takes special knowledge and skills to conduct an effective turnaround. 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. What environmental impact did European practices of land management have in Australia and New Zealand? the owner's reason for selling. Sales records are of very little value to a buyer in evaluating a company's worth. Franchisees have the option of using the logo and symbols of the franchisor. C. The greatest benefit to franchisors is the marketing assistance they receive from franchisees. Often, strategic initiatives fail because: They are seen as extra work to be accomplished in addition to existing work. c. Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. Which of the following is true regarding inspections conducted by franchisors? Changes in the product supply chain. Develop strategic plans for the franchise firm. a. SCORE is a group of retired businesspeople who volunteer their services to small business through the SBA. b. A) In traditional stand-alone units E) Loss of control, All of the following are selected franchise fees and costs according to the text, except ________. Godfrey has just graduated from business school and is seeking employment. c. C. Is usually a one-time flat fee paid by franchisees to franchisors. Business related reasons for selling do not include which of the following? Suggests the franchisor provides relatively little in the way of management assistance to the franchisees. Though a location manual or policy may be developed to assist in determining optimal sites, for franchised businesses that require a store-front location the final determination often rests with: Which two concepts receive primary consideration when determining store layout? Ability to achieve a good golf score while making sales to prospective franchisees. During the period a patent is in effect, no business or individual can copy or use the patented invention without the patent holder's permission. As it pertains to the scope and importance of franchising, which of the following statements is most accurate? a. 9 c. The Uniform Franchise Offering Circular _______. He has read about the success rates of franchises and the success rates of start-up businesses. b. Compared to other types of businesses, the failure rate for franchises is __________. What types of customers does this store attract? When purchasing an existing business, the prospective owner should conduct an assessment of the current group of employees. Which of the following is true about the serious prospective franchisee? franchising About how much work should she expect to do to make the franchisee successful? c. Changes in leasehold conditions. d. The term "risk vs. loss" refers to the amount of return for funds invested. All franchisees operating under single-unit franchises own and operate one unit. What is a realistic number for a sample size when doing market research? d. franchise fees all of the above. B. There is no need for legal representation when entering into a franchise agreement. alternative energy The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts. E) All of the above. Which one of the options below is not one of these critical customer perception factors? c. D) Legal action How many of the employees will remain? What is the largest guaranteed loan she could be granted? Stuart has $50,000 to start a new business. a. Uniform Franchise Offering Circular (UFOC) (pg 134) according to Brian Hendricks, what are the 5 "p's" of entrepreneurship. An individual looking to buy a franchise should _________. Why would a person choose to buy a franchise? b. The prospective investor should get as much information as possible on the franchisor. d. a. a legal restraint of trade. A. c. help out with financial assistance. D) Data regarding existing units 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. The franchise's time frame. Short-term obligations created by the franchisee in buying supplies, materials or services associated with running the business are referred to as: Often considered the most critical financial component of working capital is, NOT: accounts receivable T/F, The entrepreneur who enters into a franchising agreement does not acquire the right to use the franchisor's trademark of brand name. An existing business has an established cash flow. It is always important that you weigh the advantages vs. disadvantages in purchasing a franchise.

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