Franchise 7.1 Review

Front

What is a franchise?

Back

Where a business sells the rights to their brand.

Front

Which is a franchisor? Options: Starts a business, Takes over a business, Buys into an existing brand, Allows others to use their brand name

Back

Allows others to use their brand name

Front

Franchisee does not have the right to use the brand

Back

False

Front

True or False: A Franchisee has total control of their business

Back

FALSE

Front

TRUE or FALSE - The Franchisee can benefit from using the brand name of the Franchise, as well as advertising and marketing

Back

TRUE

Front

Franchise is costly because: High investment cost, Initial franchise fee, franchisee is required to pay advertising fee

Back

All of the above

Front

Which party needs to seek professional legal, accounting and business advice prior entering into the agreement?

Back

The franchisee

Front

What is a franchise agreement?

Back

A contract between the franchisee and the franchisor.

Front

What is a royalty fee in franchising?

Back

A fee paid to the franchisor for the use of their brand and ongoing support.

Front

Which of the following is a responsibility of the franchisee? Options: Developing the brand and marketing strategies, Providing ongoing training and support to other franchisees, Adhering to the standards set by the franchisor, Approving new franchise locations

Back

Adhering to the standards set by the franchisor