Franchising 101

Franchising is a type of business model where the franchisor or owner of the business model provides their franchise model to the franchisee, the person attempting to run that business in a specific location.

• True

• False

A good business model is best described by which of the following?

Check the three that apply.

• How a business operates to create profit

• Identifies target customers and markets

• how the business creates and delivers value to customers

• is only a business plan

Business assistance or guidance from the franchisor is one benefits of being a franchisee.

• True

• False

Some autonomy is lost when opening a franchise.

• True

• False

Autonomy is best defined in business as

• the ability to meet with upper management

• the ability to run the business as you see fit

• the ability to run the business as the franchisor sees fit

• the ability to make few decisions in the business

Franchises are statistically more successful than startups.

• True

• False

One of the benefits of franchises is the fact you are utilizing a new business model and approach.

• True

• False

All of the following are important steps to owning a franchise.

Check the four that apply.

• Choosing the market you will enter.

• Deciding which franchise is most appropriate.

• Understanding the terms of the franchise agreement.

• Securing financing or credit through a bank or lender.

• Creating a new business model

A market is most related to which of the following when considering a franchise. Choose all that apply.

• geographic segmentation (location)

• a group of individuals or organizations that are potential customers

• a place to buy and sell goods.

• a place to buy goods

The largest global franchise is

• Burger King

• KFC

• McDonald's

• Target