2 Most information is provided in the disclo sure statement or prospectus a The

2 most information is provided in the disclo sure

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2. Most information is provided in the disclo- sure statement or prospectus . a. The Federal Trade Commission’s Fran- chise Rule requires franchisors to make full presale disclosure in a document pro- viding information in 20 aspects of a franchise offering. b. Some of the information in the prospec- tus will be poorly written and sketchy. c. There are always weaknesses that must be evaluated prior to making a commit- ment. 3. Front-end procedure fees, royalty payments, and expenses should be compared. 4. The entrepreneur may request a franchise package from the franchisor for a deposit for $300 to $500. C. The contract or franchise agreement is the final step in establishing a franchise agreement. 1. This contains all the specific requirements and obligations of the franchisee. 2. Renewal terms, financial requirements, and termination requirements are stipulated. slide show beginning on page 120 of this manual.) Text Table 15.2 “Information Required in Disclo- sure Statement” (Text figure on page 491) AS SEEN IN ENTREPRENEURSHIP MAGAZINE: Provide Advice To An Entrepreneur About Franchising. Curves for Women is the fastest growing franchise for 2003. To- tal investment required is $25,000 to $31,100. (Box in text on page 492) IV. JOINT VENTURES A. With the increase in business risks, hyper-com- petition, and failures, the use of joint ventures has increased. 1. A joint venture is a separate entity involving two or more participants as partners. 2. They involve a wide range of partners, in- cluding universities, businesses, and the pub- lic sector. B. Types of Joint Ventures. 1. The most common type is that between two or more private-sector companies. Learning Objective 2. To understand how joint ven- tures can help an entrepreneur grow his or her business and acknowledge the challenges of finding, and maintaining, an effective joint venture relation- ship. K E Y T E R M Joint venture. Two or more companies forming a new company. Chapter 15 106 Entrepreneurship
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CHAPTER OUTLINE AND TEACHING NOTES 2. Some joint ventures are formed to do cooper- ative research. 3. Industry-university agreements for the pur- pose of doing research are also increasing. a. Two problems have kept this type ven- ture from increasing even faster. b. A profit corporation wants to obtain tan- gible results—such as a patent—from its research investment, and universities want to share in the returns. c. The corporation usually wants to retain all proprietary data while university re- searchers want to make the knowledge available. d. Joint ventures between universities and corporations take many forms, depending on the parties involved and the subject of the research. 4. International joint ventures are increasing rapidly due to their relative advantages. a. Both companies can share in the earnings and growth.
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  • Summer '17
  • javed
  • Business, franchisor

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