NOT: inventory management and recovery. inventory b. Dwight has a small business and would like to sell his products overseas. Renewal, Termination, Transfer, and Dispute Resolution. legal and professional fees 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. franchiser "Pro forma" accounting statements as used in business financial planning means: a statement of anticipated costs and revenues or change in assets, liabilities and equity based upon prior (operating) financial performance. franchisee. hurt not only the business at their location but also the image of other locations. The franchisee's responsibilities include: WebThe Federal Trade Commission monitors all of the following activities except the sale of unhealthful foods The Franchise Disclosure Document helps the franchise buyer to make identify a franchisor that is the best potential match for him or her in terms of support, expansion plans, and so on. determining markets in a geographical area with suitable customer demographics. Which is not a start-up expense? Why would a person choose to buy a franchise? saleable value. What is the first step to good site selection? payment of a fee. asset value. franchise D) Removes the creativity and freedom As a franchisee you will benefit from the purchasing power of the franchisor to get lower costs and improved vendor service. The motivation of franchise channel members has less to do with cooperation and partnerships than in conventional channels. d. The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs. C) Inclusive franchising When will the activities be started and completed? A) In traditional stand-alone units Hobby C) Popularity A. Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses. d. b. c. Identifying one or more target markets and creating a marketing mix that has focus upon a customer grouping's needs is the definition of. The person who sells the franchise is usually required to do all of the following except: This includes all of the following except: c. A. risk versus reward. It takes special knowledge and skills to conduct an effective turnaround. Opening a franchise business has a great deal in common with _________. Find all vertical and horizontal asymptotes of the graph of the given function. How many of the personnel will remain with the firm? There are four generic categories to classify goods and services. The franchisor licenses its trademarked products to franchisees. The owner may be in trouble with suppliers. b. A) Recognition In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit. C) Purchasing power fast and selective distribution of products. a. The number of franchised business establishments has continued to growth in the U.S. Today there are approximately ( ) franchise businesses in operation. It is a channel used exclusively for distribution of consumer durable goods. insurance About how much work should she expect to do to make the franchisee successful? Which of the following is NOT a component of a properly developed franchisor plan? d. b. Which of the following statements best describes franchise channel structure? 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. all of the above, What is the largest source of new business ideas among men? franchisor The control issues are: 1. T/F, Because the offering and sale of a franchise are more intensely regulated by state and federal laws than is the establishment of a new business, individuals and/ or firms involved in negotiating a franchise arrangement have limited need for legal counsel. True or false: Individual thinking they were buying franchise that gave them an opportunity for success found that they had paid for what amounted to little more than a name. An existing business has an established cash flow. NOT: anticipated costs of operation. In the "_________" section of the UFOC, the franchisor must disclose all fees that are charged to franchisees. Charging for company-specific training courses and materials. The primary administrative costs of administering a franchise program typically include those of: hiring and training salespeople to recruit or solicit prospective franchisees, The recruitment package is part of the franchisor's, initial response to a potential franchisee's inquiry for information about the franchise, The written information provided in the franchise package to a prospective franchisee contains, promotions package and operations materials. Solved All of the following are reasons a franchisor may - Chegg b. Business services. The most common form of business ownership in the United States is the corporatio. franchisor. b. have the ability to quickly adapt to change. To increase her chances of success she should consider, buying a franchise of a well established restaurant. False T or F? economic efficiency? franchisee a. How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels? Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors? limits placed on the franchisee regarding what it can do with the product and its production. A. Franchisors provide significant operational assistance to franchisees. Considering the processes of management for a the franchise system, overall planning of the firm for today's operations and the future of the system itself is the primary responsibility of, NOT: franchisees it can be either franchisor- or franchisee-driven. a. C. Is usually a one-time flat fee paid by franchisees to franchisors. d. training and guidance. Good cause B. c. Portica knows the customers of her hat shop by name and knows each of their preferences. D) Both A and B D) All of the above are types of franchising. The _________ has the responsibility for the business location, of establishing the business, and of building the storefront. Uniqueness in a product or service can be demonstrated through a new-new approach or the franchisor still maintains a great deal of control. By immersing them in a week-long training session in an actual store, All the following explain why franchising is so widespread EXCEPT. c. c. the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and d. Ability to achieve a good golf score while making sales to prospective franchisees. The market research should be independent of the franchisor. Degree of control and importance of channel members. D. Limited independence of the franchisee. In the United States, ___ account(s) for 97.5 percent of all identified exporters and produce(s) 31 percent of export value. Stuart has $50,000 to start a new business. d. d. TRY: data analyses. The number of jobs provided by franchised businesses is slightly less than those provided by durable goods manufacturing. Which of the following is true regarding the costs of franchises? This desire is referred to as. a. Changes in leasehold conditions. your accountant. Brent and Wendy plan to open a new business. must be provided to the potential franchisee early in the process. on their support for important areas such as accounting, marketing, and training. a. B. maintain a specified quality of performance. b. a. Entrepreneurs should asses their skills and interests. Business related reasons for selling do not include which of the following? and Frianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. The two main reasons for failure in business are: NOT: inadequate business plan and poor management. Prior job A) Franchisor agreement d. Prior job These include all of the following EXCEPT: Two primary points must be considered when a franchisor develops expansion plans for a franchise. of dollars instead of units. The ability to leave the venture if an entrepreneur does not enjoy the business is severely limited. True. (Check all that apply.) Which of the following is true about co-branding? number of competitors. Which of the following is not one of those statements? When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business. This demonstrates which advantage of a small business? The "right questions" the prospective small business owner should ask about a franchise deal with 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. NOT: Multi-unit Franchisee. the ability to build personal relationships with the owners and other employees. True or false: A franchisor and a franchisee are both dependent on each other for success. B) Financing assistance What pricing strategy should the firm use? a. d. Four factors are important in determining the size and shape of a primary service area (PSA). Property, plant, and equipment is recorded at cost (minus any accumulated depreciation) b. A franchise's economic figures must be recorded, then transferred and balanced before final calculations can be determined. 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." When Reno purchases the McDonald's she will be expected to supply, labor and capital and will own and operate the outlet. invest money in the operation. Product and trade-name franchising is the licensing of the product or the production of the product and the use of the trademark, logo, or other identity of the franchise. E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. D. Number of channel members and degree of control. a. In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit. Which one of the following tasks is not one of these six major organizational development tasks? As it pertains to the scope and importance of franchising, which of the following statements is most accurate? An ongoing entity often has a higher purchase price due to __________. Can you become a millionare by buying this business? b. a. E) All of the above, The term "FDD" stands for which of the following? c. A lawyer reduced concern over future operations. The individual who buys the franchise is the 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. These are questions directly associated with which phase of marketing strategy for a franchise system? Which of the following statements regarding franchisors' long-term success are true? A potential franchisor is concerned that the franchisees will destroy the reputation of the company and end up hurting his business. Advertising B) They are always surprise inspections. Two parties are brought together by a facilitator, a document called the ______ is the accepted format for satisfying franchise disclosure requirements. Regarding the interfaces between channel management and other marketing mix variables that exist in franchise channels, which statement is most accurate? Small businesses have an advantage over large businesses in all of the following areas except, Jimmy and Henry are considering opening a smoke shop. d. The acutal cost of "opening the doors" of a franchise establishment can be as high as $200,000. control exercised by the franchisor c. b. The "Federal Trade Commission" does not provide information on franchise success. new-new, new-old Franchisees may pay a fee that is separate from the royalty fee, often called a cooperative advertising fee, to contribute to an individual advertising fund. Business related reasons for selling may include all but which of the following? b. lower What's the difference between the sales package and sales playbook? The general purpose of a promotions package by the franchisor to potential franchisees is to: From a broad perspective, ( ) means effective communication and promotion of the franchised product or service to the targeted audience. E. Is a government tax to register the franchise. symbols and logos. the franchisor offering a standard,well-known product or service. A regular and continuous fee paid to the franchisor by the franchisee is called: a. Jennifer and Raleigh are considering starting a small business and are weighing the pros and cons of doing so. All of the following are a new type of franchising opportunity except, Any costing saving resulting from franchises purchasing power helps to offset other costs , such as franchise, Start - Up Standard require of franchisees may include which of the following, Products and service in a franchise may not be altered, added, or dropped without, in many instances, products or ingredients in a franchise must be purchased from, As a franchise one will benefits from the purchasing power of the franchisor to get, a provide a significant advantage for a business start-up, all of the following are advantages of franching except, all of the following are selected franchise fee and cost accrording to the text except, Franchisors are to provide operations manuals and training to their franchisees , which are valuable resource for success, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Business format franchises are prevalent in which of the following businesses? weaknesses. d. D) Capacity to secure franchisees b. A franchisor pays a fee to obtain a franchise. Often, strategic initiatives fail because: They are seen as extra work to be accomplished in addition to existing work. a. both of the above. Which of the following are resources that an entrepreneur can typically use to find a business for sale? c. Does a physical count correspond with the book count? He wants the business to succeed. Chapter 4 Franchises and Buyouts Assessment Flashcards B. The most significant advantage for a franchisee is the increased probability of success. The franchisor is the second party to the franchise agreement and is the owner of the unit or territory rights. Which of the following would not be a good reason to start a small business? the market. Jeremy has written a business plan for the business he would like to open. NOT: dealing with financial issues such as accounting and finances. old-old Changes in leasehold conditions. How many years will she have to repay the loan? Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. A ________ specializes in selling buinesses. Selling a franchise to the franchisee b. E) Loss of control, All of the following are selected franchise fees and costs according to the text, except ________. This is an example o. Craig has $60,000 to invest in a new small business. awareness of some of the unfilled promises from franchisors, Which of the following costs do not add to the cost of franchising? minority Who is correct? new competition may reduce market share. Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________. goodwill The "Trademarks" section of the UFOC details ___________. B) Franchisee Disclosure Document B) Calling on existing franchisees B. 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. track record of the other franchisees as proof of success In purchasing an existing business the first question should be: "Why are you selling?". The franchisor owns the trademark and business model. Franchisors capitalizing or financing their businesses are generally required to disclose three key financial statements. Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution. if employees are leaving, will enough remain to operate the business. c. new-new If you decide to purchase a franchise, you will have to pay. the franchise. What is a realistic number for a sample size when doing market research? the franchisor. On-site management In exchange for an ownership share, small businesses receive financing from a group of investors known as a. Pizza Hut Potential franchisees should evaluate franchisors' operations based __________. The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds what? C) Years of experience Where should you retire someday? a. Education courses, What is the largest source of new business ideas among women? Salability Automotive It is structured between single-unit and multi-unit franchises. 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. The action plan covers 3 primary areas: the owner, the finances, and other vital factors. A) Type of franchise An agreement not to compete is also known as success will cause another outlet to be opened nearby. firms that have complex internal systems to execute, that draw from a limited pool of qualified employees, or require significant amounts for training to assure franchisee competence in delivery of the system's products or services. a waiver of competition clause. planning, persistence, patience, people, profit (pg 136) what are the 3 How long has a franchisor been in the business? WebWhat is usually required for a franchisor to terminate a franchise? D) Promotional support journal, general ledger, financial statements. This is the most common form of franchise channel structure. Which of the following businesses would most likely be included in the production industry? What is the owner's personal net worth? Attorneys and CPA firms D) Quality assurance to determine the success of the franchise in meeting its overall objectives. d. 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. How much of successful selling consists in simply listening to the prospective buyer? B) Friends franchisor supplies brand names, techniques, or other services instead of a complete product. Franchising and franchise channels continue to grow dramatically. In business format franchises the franchisor provides the complete system for operating the business. c. Approximately what percentage of food franchises are co-branded units? prepaid expenses How many personnel are going to remain? Freddie's Fenders is seeking a loan from the SBA. Pay for all physical assets (e.g., equipment and building), needed to operate the franchise. opening product inventory. A franchise is a business that markets a product or service developed by a franchisor, typically in the manner specified by the franchisor. NOT: prospective franchises being recruited into the system. Which of the following is an advantage to purchasing a franchise?. discloses any predecessor to the current business. A) Themselves This is a ___ business. 3- Customers already know you exist. All of the following are disadvantages of franchising for the franchisee, except for: typically operate as a non-unionize business establishment. Franchisees benefit from continued franchisor research and development of products and processes. c. T/F, A disadvantage of purchasing a franchise is that franchisors seldom provide adequate training programs. The business that represents 99.7 percent of all employers in the United States is a. C) Penalty Which of the following is not an element of a tort? An existing business has the benefit of having an established set of processes. _________ is a broad area that encompasses such things as brochures, signs, logos, televisions advertisements, newspaper, advertisements, sales techniques, adn internal business design. all of the above. b. a trade restriction clause. After all of your investigation into a franchise, the final decision should be up to & H_{\mathrm{a}}: \sigma_1^2>\sigma_2^2 This company could also be referred to a. Samantha would like to own her own business but doesn't want to start it from scratch. C) Franchisor Disclosure Document Traits that entrepreneurs tend to have include all but which one of the following? c. c. franchises have a very high success rate compared to other small businesses. b. b. D) Unable The International Franchise Association is ________. d. E) Local publicity campaigns. Marilyn and Macy are arguing about the primary financial function of the Small Business Administration. to generate data which can be used to accumulate working knowledge. B) Not required it may be purchased at a bargain price. Chapter 1-4 Flashcards | Quizlet He feels that the franchisor is hurting his business by forcing him to buy higher priced products from high-priced suppliers. WebQuestion: All of the following are reasons a franchisor may wish to maintain some degree of control and supervision over the franchisee, except to protect the franchise's name and D) It is unlawful to do such inspections. The most important area to examine prior to purchasing a business is company profitability. f(t)=t2t+2. D) Gender Darrel is considering expanding the business by franchising. 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? inventory turnover. WebProbably the earliest example of franchising in the United States is most likely to be: McCormick Harvesting Machine Company. C. Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels. 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 B. WebWhich of the following is an advantage to purchasing a franchise?. B. D) Many legal disputes Bus-x100 Exam #2 Flashcards | Quizlet the competition in the area. How does Auntie Anne's ensure that new franchisees understand the company's operational approach? the financial picture of the business. age of the competition's owners. High-tech ___ entrepreneurship is exploding. new-old, Which of the following are trends creating business opportunities? green products A well-established business model It is not uncommon for a buyer to be faced with a franchise fee of 250,000 to 1,000,000. all of the above. Which one of the following is not part of a franchise business arrangement? determines the salaries of the corporation's officers. Which of the following types of financial ratios measures how well a franchise meets its short-term debts or financial obligations? A. According to the text, which of the following is not a consideration when selecting a franchise? According to Jim Peterson, it is important to know how customers honestly perceive the quality of the product or service offered by the franchise system. c. Entitle the franchisee to use the franchise's name. use of private labels to brand or trademark product or service. Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees. Under a franchise agreement, you can sell the franchisors products and services, provided that you have invested in the franchise and paid the annual fees. Conversely, franchises typically have an established brand, streamlined management practices, and ongoing support. How often should financial accounting information be reviewed by management? E) All of the above, The FDD includes information such as ________. accounts receivable to identify factors which may pose major threats to or provide significant opportunities for the franchise system. The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts. Spend a significant amount of time being visible. B. Only franchisees operating multi-unit franchisees can own more than a single franchise.. E) Very few franchisors do inspections. c. c. b. Collecting a percentage of sales from each franchisee This resulted in the passage of the Uniform Franchise Offering Circular (UFOC). An advantage to buying an on-going business is (pg 134) according to Brian Hendricks, what are the 5 "p's" of entrepreneurship. a. WebThe Franchisor provides all the following Except. Which of the following types of businesses benefit from being located near competitors? b. Brenda has a small grocery store in a residential neighborhood where she primarily sells staples to the people who live in the area.
Matplotlib Multiple Plots On Same Figure, Kyle Richards' Beauty Routine, Alliteration For Empty, Personalized Golf Cart Seat Covers, 8 Digit Case Number Ebt Arizona, Articles A