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Question 16

2 out of 2 points
In franchising, ________ pay fees and royalties to a ________ in return for the right to
sell its products or services under the franchiser's trade name and often to use its business
format and system.
Answer
Selected Answer:
franchisee franchiser
!orrect Answer:
franchisee franchiser
Question 17
" out of 2 points
#he primary mar$et for %.S. franchisers is:
Answer
Selected Answer:
!anada.
!orrect Answer:
&urope.
Question 18
" out of 2 points
#erritorial protection in franchising:
Answer
Selected Answer:
is basically every franchisee for him'herself.
!orrect Answer:
varies according to industry.
Question 19
2 out of 2 points
#ypically, the franchiser controls are very tight on what the franchisee:
Answer
Selected Answer:
sells in terms of the product or service they offer.
!orrect Answer:
sells in terms of the product or service they offer.
Question 20
2 out of 2 points
________ franchising involves providing the franchisee with a complete business
system((the established name, the building layout and design, accounting systems, etc.
Answer
Selected Answer:
)ure
!orrect Answer:
)ure
Question 21
2 out of 2 points
#he most litigated sub*ect of the franchisee agreement is:
Answer
Selected Answer:
termination of contract.
!orrect Answer:
termination of contract.
Question 22
2 out of 2 points
In view of the cause of most new business failures, probably the most valuable service
provided franchisees by the franchiser is:
Answer
Selected Answer:
management training and e+perience.
!orrect Answer:
management training and e+perience.
Question 23
2 out of 2 points
A significant advantage a franchisee has over the independent small business owner is
participation in the franchiser's ________.
Answer
Selected Answer:
centrali,ed and large(volume buying power
!orrect Answer:
centrali,ed and large(volume buying power
Question 24
2 out of 2 points
#here are two main ris$s in purchasing a franchise. -irst, that of the franchiser's
e+perience and business system, and second:
Answer
Selected Answer:
the entrepreneur's managerial s$ills and motivation.
!orrect Answer:
the entrepreneur's managerial s$ills and motivation.
Question 25
2 out of 2 points
#he failure rate for franchises is:
Answer
Selected Answer:
lower than the rate for all new businesses.
!orrect Answer:
lower than the rate for all new businesses.
Question 26
2 out of 2 points
#he payment the franchisee ma$es to the franchiser based on gross sales is:
Answer
Selected Answer:
a royalty.
!orrect Answer:
a royalty.
Question 27
2 out of 2 points
In ________ franchising, a franchisee purchases only the right to become identified with
the franchiser's trade name.
Answer
Selected Answer:
trade name
!orrect Answer:
trade name
Question 28
" out of 2 points
#he primary advantage of buying a franchise over starting your own company is:
Answer
Selected
Answer:

the absolute territory protection offered by all franchisers.
!orrect Answer:
in the purchase of the franchiser's e+perience, e+pertise, and
products.
Question 29
2 out of 2 points
________ franchising e+ists when a franchisee is licensed to sell specific products under
the franchiser's brand name through a selective distribution system.
Answer
Selected Answer:
)roduct distribution
!orrect Answer:
)roduct distribution
Question 30
" out of 2 points
#he ________ re.uires all franchisers to disclose detailed information on their operations
at the first personal meeting or at least fourteen days before a franchise contract is signed
or any money is paid.
Answer
Selected Answer:
#rade /egulations /ule
!orrect Answer:
-00

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