Up-front capital requirements Which of the following statements best describes franchise channel structure? franchisette. Franchising and franchise channels continue to grow dramatically d. Which of the following is NOT one of the four P's of selling? If a franchise system is struggling, not achieving long-term success. How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels? E) All of the above. franchiser a. With regard to the evaluation of franchisee performance and degree of control: The high degree of control by the franchisor helps to provide a guaranteed, detailed, and regular flow of performance data that benefits both parties. Business students at universities can work together to provide management counseling to small businesses in their community. d. A CPA B. Which of the following organizations can assist him? a. The action plan covers 3 primary areas: the owner, the finances, and other vital factors. Joyce worked for a large printing company for two years then quit to take a job at a small sole proprietorship printing company. Importance of channel members and nature of product old-new E) Local publicity campaigns. This includes all of the following except: Franchises include the business name and a general plan for business operations. The "Federal Trade Commission" does not provide information on franchise success. Uniqueness in a product or service can be demonstrated through a new-new approach or What is the name of the business agreement Henry would sign? C) Inclusive franchising Which of the following small businesses could be categorized as being in the distribution industry? B) Consistency c. D) Both A and B Automotive A) Success Which is not a start-up expense? a. The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. The Clayton Act makes it illegal for competitors to get together and set prices on the products or services they sell. Henry approaches her about operating his own business under the terms above. to generate data which can be used to accumulate working knowledge. d. A franchisor pays a fee to obtain a franchise. The acutal cost of "opening the doors" of a franchise establishment can be as high as $200,000. Which of the following sequences of the three-step location model is correct? A. Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________. the franchise. T/F, There is no need to find out more information about a prospective franchise as the franchisor should be the primary source of information T/F, A 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 potential value of any franchise arrangement is defined by the rights outlined in the franchise contract. c. The owner may be in trouble with suppliers. b. Repeat the test using the critical value approach. A. Stuart has $50,000 to start a new business. Frieda's Freestyle Skateboards has many customers but is not dominant in its field. Degree of control and importance of channel members asset pricing. They have heard that the disadvantages of small businesses include all of the following except. Actions by franchisors to void the contracts of franchisees in order to sell the franchise to someone else and collect an additional fee. Bringing two or more franchise brands together within a single enterprise. The exercise of reasonable care in the evaluation of a business opportunity. Organization the process of change within the business Which type of franchisor manual is specifically focused to this purpose? b. a deferential sale of business clause. d. Ability to achieve a good golf score while making sales to prospective franchisees. D. Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. What is the effect of such a tax on E. Possible high level of managerial motivation fostered by franchising. d. C) Franchisor Disclosure Document None of the above, Who must negotiate the final deal? must be provided to the potential franchisee early in the process. High-tech ___ entrepreneurship is exploding. What Should the Franchisor Control? - Franchise Law, Disputes NOT: prospective franchises being recruited into the system. Portica knows the customers of her hat shop by name and knows each of their preferences. D. Franchising is an American business model that does not work well outside the U.S. Offer new products/services in new territories to new customers, One who owns and operates more than one franchise unit is known as a, NOT: Area Developer This desire is referred to as. All of the above. Small Business Chp IV - Franchises and Buyouts Flashcards inventory 2- Do not have to find employees Jack owns a franchise. In business format franchises the franchisor provides the complete system for operating the business. The costs of franchises vary significantly. b. d. B) Positive relationships with their franchisees have the ability to quickly adapt to change. A ________ specializes in selling buinesses. C) Any suppliers your financial backer. a. franchiser. d. The extra value a business can command in a sale is known as saleable value. 41 proven track record. the market. 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. b. 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. equity? d. a. Degree of control and importance of channel members. 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. Where should the business be located? A well-established business model accounts receivable B. E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. The franchise with the most outlets in the United States is. limits placed on the franchisee regarding what it can do with the product and its production. Macy argues that its primary function is to guarantee loans. What is the condition of the inventory? Traits that entrepreneurs tend to have include all but which one of the following? use of private labels to brand or trademark product or service. ENT 3172 Chapter 1-12 Terms Flashcards | Quizlet Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors? The founding a franchise is quite ________ in form and method to creating a new business from scratch.