1.The entrepreneur who buys the franchise:
2.According to your text, which is not true regarding franchises:
right to operate for a specific period of time
limited competition in a specific radius.
right to operate for an unlimited period of time.
rights to an established brand
3.The basic contract generated by the franchisor which contains clauses requiring the purchase of supplies, the displaying of marketing material, and the payment of fees that are based upon the sales of the branch operation:
4.The franchisor makes money in all of the following ways except:
Selling the franchise to the franchisee
Buying the franchise from the franchisee
Collecting a percentage of sales
Selling supplies to the franchisee
5.After selling your business, you should do all of the following except:
Make all significant changes in one day
refrain from discussing the purchase with your staff
Inform customers of the change in ownership
Discuss the purchase with existing staff.
6.An advantage of franchise ownership is that the franchise provides:
proven operational techniques
all of the above
7.When purchasing a franchise the entrepreneur should consider all of the following except:
what is included in the franchise.
franchisor obligations only.
both franchisee and franchisor obligations.
franchisee obligations only.
8.When purchasing a franchise, one should consider what is included in the franchise, steps to obtain the franchise, and:
Both franchisee and franchisor obligations
Franchisee obligations only
Franchisor obligations only
None of the above.
9.The principal governing mechanism of the franchisor-franchisee relationship is the:
Uniform Franchise Offering Circular
10.The firm that originates the idea for the business and develops the operational methods:
1 a) The entrepreneur who buys a franchise... View the full answer