Starting a Franchise Business

The company that offers a franchise for purchase is called ________.

• franchise

• franchisee

• sole proprietor

• franchisor

A legal agreement that gives an individual the right to market a company’s products or services in a particular area is called ________.

• franchise

• franchisee

• franchisor

• sole proprietor

The person who purchases a franchise is called ________.

• franchise

• franchisee

• sole proprietor

• franchisor

The amount the local franchise owner pays in return for the right to run the franchise is called the ______ _______.

(a)  

The costs associated with running a business is called _____ _____.

(a)  

Fees paid to the franchise company to support television, magazine, or other marketing for the franchise as a whole are called ____ _____.

(a)  

Weekly or monthly payments made by the local owner to the franchise company are called ​ (a)   .

• royalty fees
• advertising fees
• start up costs
• premiums

If you are looking to start a franchise business, you should evaluate it by ​ (a)   the franchisor’s ​ (b)   and ​ (c)   .

• researching
• history
• profitability
• ignoring

If you are looking to start a franchise business, investigate ​ (a)   about your potential ​ (b)   .

• claims
• earnings
• losses

When evaluating a franchise, listen ​ (a)   to sales presentations, do not sign up ​ (b)   , and do not fall for a ​ (c)   of easy​ (d)   .

• carefully
• immediately
• promise
• money
• carelessly